Industrial strikes beyond token protests are uncommon in China but growing in number by all accounts. The one at a Honda parts factory in Foshan that has shut down all four of the Japanese car makers assembly lines in the country is notable. It is being talked of as the largest industrial action since China started opening up its economy to foreign investment.
Workers at Honda’s Foshan plant are demanding that their monthly salaries be raised from 1,000-1,5000 yuan ($146-220) to 2,000-2,500 yuan. Minimum wage in the city is 920 yuan. The plant employs some 1,850 workers making transmissions and engine parts for Honda’s three joint venture factories building cars for the domestic market and its one that makes the export-only Jazz compacts. They say they want more money to offset rising consumer prices.
Negotiations between the company and the workers broke down, prompting local officials to step in. With labor shortages being reported in the Pearl River Delta, workers have a stronger bargaining hand than before. So manufacturing wage costs seem likely to rise across the board.
China Bystander 