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Strike halts Honda factories in China
By Jin Jing |
May 27, 2010, Thursday
|
Online Edition
Online Edition
A STRIKE at a transmission factory has forced Honda Motor Corp to shut its four manufacturing plants in China.
"Along with local government officials, we are in discussion with employees trying to solve the wage disputes as soon as possible," said Zhu Linjie, spokesman of Honda Motor (China) Investment Co Ltd.
"All options are under consideration including importing parts from neighboring countries to resume production," he told Shanghai Daily today.
Workers at Honda's transmission factory in Foshan City, Guangdong Province, walked off the job on May 17 to call for a pay rise of about 1,000 yuan (US148) a month.
They returned to work the next day, but walked out again on May 21 and have been on strike ever since.
The resulting transmission shortages forced Honda to suspend its vehicle-assembly operation in all of its Chinese plants in Guangdong Province and Hubei Province, Zhu said today.
The company offered a pay rise of 355 yuan yesterday but workers rejected the deal.
The transmission plant has about 1,900 workers and produces 480,000 auto transmission parts a year.
Zhu said there is still no timetable for resuming production.
Strikes over wage disputes are rare issue for car makers in China after buoyant sales last year boosted profits for major producers. However, Japanese car makers are also known for their tight cost control on production.
Sales of Honda rose 22.5 percent in China to 576,000 units last year, a slower pace compared to the industrial average of 46 percent.
The strike happened one day after Honda announced aggressive expansion in China to deal with rising market demand.
"Along with local government officials, we are in discussion with employees trying to solve the wage disputes as soon as possible," said Zhu Linjie, spokesman of Honda Motor (China) Investment Co Ltd.
"All options are under consideration including importing parts from neighboring countries to resume production," he told Shanghai Daily today.
Workers at Honda's transmission factory in Foshan City, Guangdong Province, walked off the job on May 17 to call for a pay rise of about 1,000 yuan (US148) a month.
They returned to work the next day, but walked out again on May 21 and have been on strike ever since.
The resulting transmission shortages forced Honda to suspend its vehicle-assembly operation in all of its Chinese plants in Guangdong Province and Hubei Province, Zhu said today.
The company offered a pay rise of 355 yuan yesterday but workers rejected the deal.
The transmission plant has about 1,900 workers and produces 480,000 auto transmission parts a year.
Zhu said there is still no timetable for resuming production.
Strikes over wage disputes are rare issue for car makers in China after buoyant sales last year boosted profits for major producers. However, Japanese car makers are also known for their tight cost control on production.
Sales of Honda rose 22.5 percent in China to 576,000 units last year, a slower pace compared to the industrial average of 46 percent.
The strike happened one day after Honda announced aggressive expansion in China to deal with rising market demand.
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