Shimano-Kunshan: Short Strike is Over
KUNSHAN, China – Unofficial sources at Shimano confirmed that the strike at Shimano (Kunshan) Bicycle Parts Co., Ltd. was brought to an end on 10 April. The strike will have no impact on deliveries.
The Kunshan facility is one of Shimano’s largest factories. Employing more than 1,200 people, the factory produces entry-level bicycle components mainly made for the growing Chinese market. Therefore this strike did not disturb supplies of the European market. According to local sources some 800 workers were supporting this strike which started on the 4th of April. They brought production to a complete shutdown. Last Thursday all problems were solved. There is no official Shimano statement on the strike.
The strike was caused by the relocation of the factory within Kunshan due to the expansion of the city’s residential areas. The Chinese government plans to build a city centre in the industry park where Shimano is currently located. The Japanese bicycle component maker was offered another location in a new industrial park. Shimano accepted the proposal and is now ready to move the factory.
Local sources said that Shimano wanted to lay-off some long-time workers due to the move. They were compensated but claimed they hadn’t been paid well enough. Initially the government didn’t step in because Shimano’s compensation was in line with local legal regulations.
Nevertheless the police had to step in due to the size of this strike and it seriously affected the move of the factory. According to Shimano all issue are settled and everything runs normal again. And as noted above: There are no impacts on deliveries expected.