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June 3, 2010

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Home » Business » Auto

Work time at Honda - for now

PRODUCTION at a Honda auto parts plant in south China resumed yesterday after the Japanese vehicle maker agreed upon a general 24-percent wage increase to end the standoff with its striking workers that had dragged on for a fortnight.

Zhu Linjie, a spokesman for Honda Motor (China) Investment in Beijing, said the offer on the table equated to a monthly 366-yuan (US$53.58) pay raise to the 1,900 workers at the Foshan plant in Guangdong Province.

This effectively lifts affected employees' monthly salaries to about 1,910 yuan.

"Most workers at the plant have agree to the plan and returned to their jobs," Zhu said. "Production has returned to full capacity."

A small percentage of workers were holding out for a better deal and talks with them would continue over the next few days, Zhu said.

But the resumption did not mark a clean end to the prolonged dispute, with part of the workforce agreeing to return only until tomorrow, when they expect to respond to a list of unmet demands.

Honda said its four Chinese car factories, with combined annual output capacity of 650,000 units, would remain idle as planned at least through today.

The maker of the Accord and Civic models will decide today whether to restart production tomorrow.

One of the workers, an 18-year-old intern, told Reuters if demands were not met by tomorrow, the strike would resume.

About a third of the auto parts plant's workforce are interns, who as vocational students typically receive lower wages and fewer benefits than regular employees.

Interns at the plant are seeking, among other demands, an 800-yuan monthly salary increase and a new chairman to lead a restructured union.

Workers at the auto parts plant in Foshan, Guangdong Province, walked off the job on May 17.

The strike, the biggest in China's auto industry, brought Honda's four vehicle-assembling plants in China to a halt most of last and this week.

The wholly owned plants mainly supply transmissions to Honda's Chinese venture.

An official from Guangqi Honda Automobile - Honda's venture with Guangzhou Automobile Group - said it would resume production tomorrow and add extra shifts to make up for lost output.




 

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