Honda sets pact, resumes production
By Jin Jing |
June 5, 2010, Saturday
|
Print Edition
Print Edition
HONDA Motor Co said yesterday that it had reached a settlement with workers demanding more concessions at a strike-hit Chinese car parts plant, and that production had started again at its four car assembly factories.
Honda spokeswoman Akemi Ando told Reuters the undisclosed number of holdouts at the 1,900-strong parts factory in Foshan, Guangdong Province, agreed to the company's original offer to raise the monthly starting salary by 366 yuan (US$54) for regular workers and "other concessions" after compromises on both sides.
"We've reached a conclusion, and production will go back to normal," Reuters quoted Ando as saying.
The pay hike boosts the monthly wage of a contract worker to 1,900 yuan, close to the industrial average of 2,000 yuan to 2,500 yuan.
Nearly half of the employees at the wholly owned Honda Auto Parts Manufacturing Co in Foshan had gone on strike, demanding higher pay and improved working condition.
Honda said the two assembly plants that it runs jointly with Guangzhou Automobile Group Corp and an assembly plant for export -- all in Guangdong's provincial capital of Guangzhou -- restarted production early yesterday.
Later in the day, another assembly plant, run jointly with Dongfeng Motor in Wuhan, capital of the central province of Hubei, restarted production.
The four manufacturing plants in China had been shut down for most of last week when workers at a transmission plant walked off their jobs on May 17.
Honda produces 650,000 vehicles per year in China.
Honda spokeswoman Akemi Ando told Reuters the undisclosed number of holdouts at the 1,900-strong parts factory in Foshan, Guangdong Province, agreed to the company's original offer to raise the monthly starting salary by 366 yuan (US$54) for regular workers and "other concessions" after compromises on both sides.
"We've reached a conclusion, and production will go back to normal," Reuters quoted Ando as saying.
The pay hike boosts the monthly wage of a contract worker to 1,900 yuan, close to the industrial average of 2,000 yuan to 2,500 yuan.
Nearly half of the employees at the wholly owned Honda Auto Parts Manufacturing Co in Foshan had gone on strike, demanding higher pay and improved working condition.
Honda said the two assembly plants that it runs jointly with Guangzhou Automobile Group Corp and an assembly plant for export -- all in Guangdong's provincial capital of Guangzhou -- restarted production early yesterday.
Later in the day, another assembly plant, run jointly with Dongfeng Motor in Wuhan, capital of the central province of Hubei, restarted production.
The four manufacturing plants in China had been shut down for most of last week when workers at a transmission plant walked off their jobs on May 17.
Honda produces 650,000 vehicles per year in China.
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