Strikes End at Two Southern China Factories
2010-07-22 11:09
Workers at two suppliers for foreign automakers in Southern China returned to work on Thursday after obtaining hefty pay rises, ending strikes that again highlighted the carmakers' vulnerability to their Chinese suppliers.
Production at the Guangzhou factory of Japanese electronics maker Omron, which supplies switches and ignition keys to Honda, Ford, BMW and other carmakers restarted after the company agreed to pay an additional 300 yuan (U.S.$44) per month in salary and benefits, up from a current pay level of 1,270 yuan (U.S.$187).
This is significantly less than the 40% increase workers demanded when they downed tools on Wednesday, and the Omron spokesman declined to say what concessions the company had agreed to.
On Thursday workers at a Japanese-owned Honda parts supplier, Atsumitec, also ended their week-long strike after a 45% pay raise.
The burst of labor disputes has affected more than a dozen mostly foreign-owned factories, raising questions about the region's future as a low-cost manufacturing base.
Production at the Guangzhou factory of Japanese electronics maker Omron, which supplies switches and ignition keys to Honda, Ford, BMW and other carmakers restarted after the company agreed to pay an additional 300 yuan (U.S.$44) per month in salary and benefits, up from a current pay level of 1,270 yuan (U.S.$187).
This is significantly less than the 40% increase workers demanded when they downed tools on Wednesday, and the Omron spokesman declined to say what concessions the company had agreed to.
On Thursday workers at a Japanese-owned Honda parts supplier, Atsumitec, also ended their week-long strike after a 45% pay raise.
The burst of labor disputes has affected more than a dozen mostly foreign-owned factories, raising questions about the region's future as a low-cost manufacturing base.












