Honda strike is over, workers get back to work with 24% payrise
Published June 1, 2010
Whilst their aim of 2,500rmb was not met by Honda management, the strike saw their wages rise from 1500rmb to 2300rmb ($336USD) after a couple of days of strikes, however the strike leaders appear to have been fired by Honda for a breach of contract.
BEIJINGÃ¢Honda Motor Co. said it has offered striking workers who have paralyzed its car-production lines in China a 24% increase in pay and benefits, a significant concession that highlights the new challenge from organized labor facing foreign investors on the worlds factory floors.
Strikers were pushing for a 53% boost to bring their total compensation package to 2,300 yuan (US$337) a month, according to two strike leaders who were fired by Honda after the walkout began May 17 at a plant in southern Guangdong province, Chinas export powerhouse.
A group of Honda interim workers and workers hold a strike at the front gate after walking out from their plant manufacturing auto parts in Foshan at the southern Chinese Guangdong province on Monday.
Nevertheless, Beijing-based Honda spokesman Takayuki Fujii said that a majority of the 1,900 workers at Honda Auto Parts Manufacturing Co. accepted the companys offer and returned to work Monday afternoon, allowing the company to partially restart production of transmissions, or engine gears. He said several dozen workers have rejected the offer and are trying to disrupt work at the factory.
Honda now hopes to restart operations at all four of the Chinese joint-venture final-assembly plants that it was forced to shut down last week because of the lack of a key component.