Honda to Halt Production at Two South China Plants Over Strike
Posted by Author on June 9, 2010
By Takako Iwatani
June 9 (Bloomberg) — Honda Motor Co., Japan’s second- biggest automaker, said it will halt production at two car factories in China today as workers at a plant partly owned by affiliate Yutaka Giken Co. walked out demanding higher pay.
Honda doesn’t yet know whether the factories in Guangzhou, Guangdong province will resume operations tomorrow, Tokyo-based spokesman Yoshiyuki Kuroda said. Employees at Foshan Fengfu Autoparts Co. in Foshan, Guangdong, began the strike on June 7, forcing Yutaka Giken to close the factory, spokesman Kazuhito Anma said. A Xinhua News Agency report that the strike has ended is incorrect, he said.
Honda, which operates four car-assembly plants in China, agreed last month to raise pay by 24 percent to end a walkout at a wholly owned parts supplier in Foshan that halted its auto production in the nation for more than a week. Demands for higher wages are fast becoming an issue in China and companies need to get used to it, said Jun Ma, an economist at Deutsche Bank AG.
”To keep good workers, the company has to raise pay,” said Koji Endo, a Tokyo-based analyst at Advanced Research Japan. There is a labor shortage in Guangzhou because companies including Honda, Toyota Motor Corp. and Nissan Motor Co. have expanded factories there, Endo said……. (more details from the Bloomberg)
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This entry was posted on June 9, 2010 at 12:53 pm and is filed under Business, China, Company, Guangdong, Life, News, People, SE China, Social, Worker, World. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
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