Honda said its assembly lines in China resumed full operations today after production was halted over a week ago by a strike at Honda Auto Parts Manufacturing in Foshan.
The shortage of components from the plant brought the company’s joint venture car factories, Guangqi Honda Automobile and Dongfeng Honda Automobile, to a halt.
Zhu Linjie, a Beijing-based Honda spokesman, told AFP that full vehicle assembly operations had resumed following the return to work at the components plant on Wednesday. Honda offered a 24% pay rise to workers to end the strike.
The company said it was ready to give a CNY366 (US$54) raise to the 1,900 workers at the plant, taking monthly salaries including allowances to CNY1,910 (US$280).
Workers at the plant were demanding a rise CNY800 (US$117) a month as well as better promotion opportunities and have threatened further industrial action. Honda has acknowledged that some workers remain dissatisfied with the current pay rise offer.
Honda has a production capacity of 650,000 vehicles a year in China. The Foshan auto parts unit in southern Guangdong province – China’s main factory belt – makes transmission and engine parts.