Strikers hit Honda for third time
By Chang-Ran Kim and James Pomfret |
01:27 UTC+8 June 10, 2010
|
Print Edition
Print Edition
A THIRD strike in four weeks hit Honda Motor Co's Chinese suppliers yesterday, fueling concerns that unrest among workers in the world's manufacturing hub is spreading.
The Japanese vehicle maker said a strike and production stoppage had begun yesterday at a factory in southern Guangdong Province that supplies locks to the four Honda factories on Chinese mainland.
However, progress was made at a factory supplying Honda exhaust systems, with management and striking workers reaching agreement and production resuming late yesterday, according to Honda unit Yutaka Giken.
The latest walk-out comes amid growing labor disputes in the Pearl River Delta, a fast-growing and densely populated manufacturing hub home to hundreds of foreign-owned factories.
More disputes have been erupting lately between workers resentful of large income disparities and harsh working conditions, and employers trying to rein in rising costs.
Enough supplies
Firm spokesman Yoshiyuki Kuroda said the company expected no disruptions in the short term after the stoppage at Honda Lock's factory, with sufficient inventory for now.
But the three-day strike at the exhaust systems plant majority owned by Yutaka Giken would keep both car factories operated by joint venture Guangqi Honda, which builds the Accord, Fit and two other models, idle today, he said.
That strike started on Monday, just days after Honda settled a strike at a wholly owned transmission supplier that had forced it to halt all output in the world's largest auto market.
Honda shares ended down 2.8 percent in a Tokyo market down 1 percent yesterday.
Details were not immediately available on the terms of the agreement between management and workers at the exhaust factory.
Earlier, a worker surnamed Yang told Reuters workers were pushing for higher pay, compensation for having to shut down for about a week due to disruptions at other plants, and were awaiting a quarterly bonus that was due in March.
Costs fallout
"I make about 1,700 yuan (US$249)-1,800 yuan a month including overtime," he said. "It's enough for food and board, but if I want to buy a flat it's definitely not enough. Living costs are getting more and more expensive."
The strikes came amid a broader rise in wages in the Pearl River Delta, which had created a need for more rational discussions between factories and their managers, said Huang Rurong, director of an employment center close to the affected plant.
"Step by step wage increases are a part of China's economic development. This is normal," said Huang.
The strikes were certain to affect costs not only for Honda, but also other vehicle makers in China, said Koji Endo, an auto analyst at Advanced Research Japan.
Taiwan media outlets yesterday reported that 2,000 workers at a Taiwan-owned machinery firm in Kunshan near Shanghai went on strike on Tuesday seeking higher pay and better conditions.
The Japanese vehicle maker said a strike and production stoppage had begun yesterday at a factory in southern Guangdong Province that supplies locks to the four Honda factories on Chinese mainland.
However, progress was made at a factory supplying Honda exhaust systems, with management and striking workers reaching agreement and production resuming late yesterday, according to Honda unit Yutaka Giken.
The latest walk-out comes amid growing labor disputes in the Pearl River Delta, a fast-growing and densely populated manufacturing hub home to hundreds of foreign-owned factories.
More disputes have been erupting lately between workers resentful of large income disparities and harsh working conditions, and employers trying to rein in rising costs.
Enough supplies
Firm spokesman Yoshiyuki Kuroda said the company expected no disruptions in the short term after the stoppage at Honda Lock's factory, with sufficient inventory for now.
But the three-day strike at the exhaust systems plant majority owned by Yutaka Giken would keep both car factories operated by joint venture Guangqi Honda, which builds the Accord, Fit and two other models, idle today, he said.
That strike started on Monday, just days after Honda settled a strike at a wholly owned transmission supplier that had forced it to halt all output in the world's largest auto market.
Honda shares ended down 2.8 percent in a Tokyo market down 1 percent yesterday.
Details were not immediately available on the terms of the agreement between management and workers at the exhaust factory.
Earlier, a worker surnamed Yang told Reuters workers were pushing for higher pay, compensation for having to shut down for about a week due to disruptions at other plants, and were awaiting a quarterly bonus that was due in March.
Costs fallout
"I make about 1,700 yuan (US$249)-1,800 yuan a month including overtime," he said. "It's enough for food and board, but if I want to buy a flat it's definitely not enough. Living costs are getting more and more expensive."
The strikes came amid a broader rise in wages in the Pearl River Delta, which had created a need for more rational discussions between factories and their managers, said Huang Rurong, director of an employment center close to the affected plant.
"Step by step wage increases are a part of China's economic development. This is normal," said Huang.
The strikes were certain to affect costs not only for Honda, but also other vehicle makers in China, said Koji Endo, an auto analyst at Advanced Research Japan.
Taiwan media outlets yesterday reported that 2,000 workers at a Taiwan-owned machinery firm in Kunshan near Shanghai went on strike on Tuesday seeking higher pay and better conditions.
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