Japanese automaker Honda said its auto parts factory in southern China resumed full operations yesterday after it offered a 24 percent pay raise to workers to end a crippling strike.
The walkout at Honda Auto Parts Manufacturing Co in the city of Foshan brought the carmaker’s vehicle production in China to a screeching halt last week as its assembly lines ran out of key components.
The parts plant “has resumed full production today and is at normal condition now,” a Beijing-based Honda spokeswoman told reporters, after a partial resumption of work the previous day.
The spokeswoman said all of the workers due for morning shift at the factory showed up at their posts yesterday, although some of the staff are still dissatisfied with the pay raise offer.
Honda has said it is ready to give a 366 yuan (US$53.80) monthly raise to the 1,900 workers at the plant, taking monthly salaries including allowances to 1,910 yuan.
“We are not negotiating with these workers any more. This is our final plan,” she said.
However, a Tokyo-based Honda spokesman said the company was still in talks with the Chinese workers.
“The production has resumed fully, but at the same time the negotiations are still ongoing,” the spokesman said.
“We haven’t reached complete agreement,” he said.
The company said production at the automaker’s vehicle assembly plants in China, mainly managed by joint ventures with Chinese partners, would remain closed today and the company had yet to decide when production would resume.
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