Honda Motor confirmed that workers at a second components plant in China have gone on strike just days after industrial action was called off at another components plant, also partially-owned by the Japanese car company.
The first strike, at gearbox supplier Foshan Honda Transmission Co Ltd, was called off at the end of last week after a 5-day stoppage after the majority of its 1,900 workers accepted a 24% pay rise. The strike stopped production for a week at all four of Honda vehicle assembly plants in China.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Honda said that many of the 600 workers at exhaust systems supplier Foshan Fengfu Auto Parts Co Ltd went on strike on Monday 7th June demanding higher wages. The factory supplies Guangqi Honda’s two assembly plants in Guangdong province, which make the Accord, Odyssey and Fit models. It is a joint venture between Honda’s subsidiary Yutaka Giken (70%) and Taiwan Fui group.
According to a report in the South China Morning Post, around 20 workers began inciting their colleagues into strike action after a successful precedent was set at Foshan Honda Transmission Co Ltd last week. The average wage at that factory was around USD 200 per month. By evening, over 250 workers had agreed to go on strike.
Honda said it had sufficient stock of parts to continue vehicle assembly in the short term.
Foreign-owned companies in China have been hit by a string of labour disputes recently, as workers demand better pay and working conditions. The All China Federation of Labour Unions normally discourages independent worker activism and generally sides with management.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataTony Pugliese
