Honda to resume building cars in China today

Article by Christian Andrei, on August 29, 2010

Honda Motor Co. is set to recommence car production in China today after a labor dispute that erupted there several days ago had reportedly been contained. However, workers at a lock supplier in southern China's Pearl River Delta intend to extend their strike into a third day on Friday.

At the Honda Lock plant, a group of striking workers who were dressed in white overalls rallied at the perimeter fence. These workers loudly expressed their demands for their wages to be raised.

Police blocked the roads and they also kept journalists from getting too near. The workers asked for at least a 15% increase in their annual wages, improvement in their allowances and benefits, the right to organize independent labor unions and a promise from management to not terminate those who participated in the industrial action.

Meanwhile, a Honda Lock official in Japan said that shipments will not be affected for at least a day or two, since there are a sufficient number of locks in stock.

However, if the dispute continues, it could upset the flow of supply to Honda's car plants. Honda Lock's Hirotoshi Sato said that the company continues to collect information. He declined to say when the negotiations are expected to end.

Topics: honda, china, production

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