Honda plants in Foshan,China remain closed as workers strike for better wages
28 May 2010
Honda Motor Co is still trying to resolve a labour dispute at a China parts plant that has led to the closure of all four of its car plants in the country.
No timetable has been drawn up of the resumption of production, yet according to a spokesperson.
The No2 Japanese automaker said production at its three Chinese vehicle plants catering to the domestic market would remain suspended till Monday.
Honda's local factories have been closed, with striking workers at a parts plant having rejected the automaker's proposed solution, according to the Tokyo-based company's e-mailed statement today.
The statement went on to say that most of the employees were willing to return to work and the local government was helping coordinate the talks.
About 1,850 workers at Honda Auto Parts Manufacturing Co in Foshan, Guangdong, walked out 17 May demanding a pay rise, which caused Honda to halt output at four assembly plants starting 24 May as parts ran short. The action is being seen as indication of what automakers can expect in China, say analysts.
One of the affected plants, which rolls out 120 Jazz subcompacts a day for export will scale down operations to 50 units on 31 May using parts from inventory a spokeswoman said in Tokyo.
