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Business

Chinese Honda plants remain shut in rare walkout

Text by News Wires

Latest update : 2010-06-10

Japanese carmaker Honda said two assembly plants in southern China would remain shut for a second day Thursday due to a worker strike, in the latest evidence of a tentative rise in industrial action in the country.

AFP - Japan's Honda Motor said two vehicle assembly plants in China remained closed Thursday due to a new labour dispute in southern China, but an earlier strike at an exhaust parts maker had ended.

Production at two plants in southern Guangdong province run by Honda's Chinese joint venture Guangqi Honda Automobile would be closed for a second day, a Tokyo-based Honda spokeswoman told AFP.

The plants were closed Thursday due to a new dispute involving workers at a factory that produces locks for the company's cars, she said.

The spokeswoman said production at Foshan Fengfu Autoparts, a joint venture between Honda's subsidiary Yutaka Giken and a Taiwanese firm that produces exhaust and muffler components, resumed production on Wednesday.

"The negotiations ended around 6:00 pm last night. We resumed our normal production operations from this morning." the spokeswoman said.

However, workers at Honda Lock (Guangdong) Co, a joint venture in Zhongshan city, Guangdong, that supplies key systems, door locks and other parts for Honda's carmaking plants, were still on strike, she said.

"When the plants will resume operation depends on when parts supply will resume."

Production at the lock plant, with around 1,500 employees, halted on Wednesday.

The official Xinhua news agency reported late Wednesday that at the latest strike, workers at Honda Lock (Guangdong) were demanding an increase in their monthly salary from 1,700 yuan (250 dollars) to 2,040 yuan, citing unnamed sources at the local government.

The labour dispute comes after Honda, which has a production capacity of 650,000 vehicles per year in China, last week resolved a strike at its parts unit in Guangdong by offering workers a 24 percent pay rise.
 

Date created : 2010-06-10

  • AUTO INDUSTRY

    Strike forces Honda to shut assembly plants in China

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