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On April 1, 2008, About 20,000 Workers in Vietnamese Factories

question 35

Multiple Choice

On April 1, 2008, about 20,000 workers in Vietnamese factories that make Nike shoes walked off the job. The workers at the plants (managed by a Taiwanese company) were demanding higher wages. At the time of the strike, the Nike workers were being paid 14% above the minimum wage for Vietnam. However, consumer prices in Vietnam have risen 19% in one year. The inflation rate has been the impetus for a number of labor strikes over the past year. By April 2, 2008, the strike was settled. The workers were given a 10 percent raise to their $5 hourly wage. If Nike's wages that it was paying were legal, why did it settle the strike by agreeing to pay more?


Definitions:

Work Environment

An environment encompassing the physical, psychological, and social conditions under which work is performed.

Job Redesign

The process of restructuring a job to improve satisfaction, efficiency, and productivity among employees.

Physical Work Environment

The tangible and physical conditions in which an individual works, including workspace layout, ergonomics, noise levels, and overall workplace safety.

Control Sources

The origins or mechanisms through which authority or regulation is exercised.

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