Circuits Assembly Online Magazine - JDS: Production 'Proceeding' at Shenzhen Plant

SHENZHEN – Workers at JDS Uniphase's manufacturing facility here are resuming operations following a reported walkout, according to company sources. The plant is scheduled to be acquired by Sanmina-SCI in the next two months, and reports held the workforce sought certain incentives as part of the deal.

Earlier this week, Circuits Assembly reported on an employee walkout at the site. In a statement to Circuits Assembly, JDS said that while "there were some labor issues, production is now proceeding and operations are resuming."

JDS added that it "continues to communicate with the Chinese Free Trade Zone Administration, the Labor Bureau and government officials ... and work closely with employees to ensure that all issues remain resolved in a way that is fair to all parties and allows the plant to continue to create jobs and benefits for its communities for many years to come."

According to published reports, employees at the Shenzhen site are striking over the deal in an effort to gain extra compensation. The strike, says Needham & Co. analyst John Harmon in a research note, came about over "demand for compensation for the planned transfer." A walkout began sometime around Feb. 5, Harmon says, citing "numerous" sources.

The site employs some 2000 workers. Sanmina is scheduled to take over ownership of the plant on or before April 6.