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April 28, 2017

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Compal resumes operations at plant in mainland after strike

TAIPEI -- Compal Electronics Inc., one of Taiwan's leading contract notebook computer makers, said Thursday one of its plants in China resumed partial operations after a recent labor strike.

More than 2,000 workers at Compal's Chengdu factory in Sichuan Province staged a strike Oct. 21, saying the company was depriving them of their rights, according to Chinese media.

They complained that they were not allowed to have time off on weekends and were not being paid for overtime, the reports said.

The company said in a statement that a labor dispute had arisen at its Chengdu plant and local officials were helping to mediate on the issues.

"Some of the indirect workers have already returned to work," the company said, referring to employees who are not directly on production lines.

In the statement, Compal did not say why its workers at the plant were on strike. Compal's spokesman could not be reached immediately for comment.

"The incident did not have any major effect on the company's finances or business," it said.

Workers at the plant went on strike Oct. 21, according to China media reports. Two days later, the situation escalated when large groups of workers surrounded a complex that included employee dorms, the media reported. The workers also took their protests to the streets around the factory, according to the reports.

On Oct. 24, Compal suspended operations at the plant, which produces over 100,000 notebook computers a month.

The Taipei-based company announced Oct. 23 that it will lay off more than 100 workers from its tablet business, which has been affected by lower-than expected shipments. Taipei City government confirmed Wednesday that Compal had given notice of a layoff of 158 workers in Taiwan, effective Nov. 1.

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