Honda Motor Co said yesterday a labor dispute at a parts plant that crippled the automaker’s production in China had been resolved after a wage increase of 24 percent.
The affected assembly plants were scheduled to start running again yesterday.
The two-week strike at an engine and transmission factory forced Honda to shut down four Chinese assembly plants for lack of parts.
It highlighted tensions between workers and foreign companies that look to China as a source of cheap labor and a fast-growing market amid weak demand elsewhere.
“Poor communication led to a great deal of discontent and eventually developed into a labor dispute. Our company will reflect deeply on this and strengthen communication with employees and build mutual trust,” Beijing-based Honda Motor (China) Investment Co (本田技研工業中國投資公司) said in a statement.
“All the factories are back to normal,” said Yasuko Matsuura, a spokeswoman for Honda in Tokyo.
She said the two sides agreed to a 24 percent increase in wages, but would not talk about other aspects of the deal.
Calls to the plants rang unanswered yesterday.
Earlier in the week, employees at the parts plant agreed to return to work on Friday after a deal was reached, but some were dissatisfied and threatened to walk out again to press for more money.
Honda spokesman David Iida at the company’s office in Torrance, California, on Friday said that all workers have agreed to a new offer and the company expects no further work disruptions.
“Now everyone’s on board and everyone’s working,” he said.
Employees at the factory in Foshan, near Hong Kong, agreed to a pay raise of 366 yuan (US$53.60) per month for each full-time worker, which would increase the monthly pay for a new employee to 1,910 yuan.
Some employees still were demanding an 800 yuan raise, though all agreed to go back to work.
Iida said he had no information on what was done to reach agreement with workers who were unhappy with the raise.
Three of the assembly plants are in Guangzhou, near Foshan, and make Accord sedans, Odyssey minivans and Jazz hatchbacks. The fourth in the central province of Hubei makes Civic sedans and CRV sport utility vehicles.
Companies in China are finding it harder to attract and keep workers, who are demanding better pay and working conditions.
On Wednesday, Taiwan’s Foxconn Technology Group (富士康科技集團) announced it was raising pay by 30 percent for factory employees in China after a spate of suicides that activists blamed on stressful conditions and overwork. Foxconn makes iPhones and other products under contract.
A Foxconn official said the company hopes the raises lead to a “happier work environment.”
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