Honda workers in China went on strike over low pay, demanding at least a 500-Yuan (€60) rise in their monthly salaries and halting auto parts production for over a week. Now a Honda spokeswoman says the Japan-based automaker will increase the monthly salaries of their striking workers at the Honda Auto Parts Manufacturing Company in Foshan by 366 Yuan (€44), or 24%. Now the average monthly salary of workers there will be 1,910 Yuan (€230) per month including allowances. If the workers carry on the strike and hold out for their 500 Yuan rise, Honda say they will seek help from local authorities.
Honda suffered huge loss of production due to the strike at their auto parts factory while their assembly joint ventures, Guangqi Honda Automobile and Dongfeng Honda Automobile, also remained closed with no supply of parts.
Honda, who follow just-in-time practice for their parts delivery, suffered as the main auto parts factory was shut down by the strike. Honda’s Chinese sales rose 31% in April year-on-year to 55,113 units and their annual sales were at 576,223 vehicles in China last year, 23% more than the previous year.
