Strike at Honda in China ends with a 24% wage rise

03.06.2010

Workers at a Honda auto parts factory in China have returned to work with a 24 per cent wage increase, after taking strike action that shut down Honda assembly plants to protest low wages.

CHINA: Production restarted at a Honda auto parts factory in China on June 3 after the company offered a 24 per cent pay rise to its striking workers. Around 1,900 workers at the plant in Foshan, China began industrial action on May 21demanding an increase in wages.

The average wage at the transmission plant was around $150 dollars and workers were reported to be demanding an increase of around $117. The strike at the plant drew media coverage when it closure resulted in the shutdown of several of Honda's assembly plants in China. The company has announced that production of cars at four plants will restart on June 4.

According to press reports, the official China Daily newspaper ran an editorial on May 28 citing the Honda strike as evidence that government inaction on wages might be fueling tension between workers and employers. The All-China Federation of Trade Unions reports that nearly a quarter of Chinese employees have not had a pay rise in five years.

Honda sold 576,223 vehicles in China last year, up 23 per cent year-on-year. The vehicles sell at prices that are unaffordable for most Chinese workers.