Toyota resumes plant output as strikes end in China

Article by Christian Andrei, on August 25, 2010

The suspension of production at Toyota Motor Corp.'s main Chinese car factory had been cut short as a settlement was entered by the management and the workers, settling the issue at the plastic parts supplier. Toyota Gosei Co., a Toyota-affiliated parts maker, offers more benefits but no pay increases.

The strike, which halted production last Friday at Toyota's joint-venture factory in Tianjin, near Beijing, is only one of a series of disturbances across the country due to labor disputes.

The Chinese government's legitimacy and its competitiveness as a low-cost factory hub are being threatened by these demonstrations.

China has a 130-million population of migrant workers that are growing more discontented with labor conditions. On Monday, the Tianjin factory, which Toyota held jointly with Chinese carmaker FAW, will resume operations as Toyota Gosei reached a deal with workers.

Toyoda Gosei spokesman Shingo Handa announced that the workers have accepted management's offer of extra allowances for perfect attendance and summer heat. These allowances would be aside from an original 20% wage increase following a scheduled, annual pay review.

Topics: toyota, china, strike

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