More Labor Trouble in China for Honda
After resolving a strike at one plant in China with a raise, Honda is facing more strikes from its Chinese plants. At least two Honda plants are striking. A spokesperson for Honda said that the strikes were "close to resolution." The strikes at Honda plants are the latest in a rash of strikes in China, with workers demanding higher wages. Thus far, the Chinese government has balked their previous practice of stopping strikes and censoring news reports. Recent strikes have been mostly uncensored in the media. The Chinese government has openly encouraged cities to raise the minimum wage and treat workers better. Some analysts see the change as a move to help raise consumption and lower the income gap. Telecom company Foxconn announced that it would double salaries after a string of suicides drew criticism and attention. Workers in one city are negotiating with KFC for a pay raise. Workers at another manufacturing plant struck early this week, and the company gave them a 22% pay raise, though they said it was unrelated to the strike. Honda plants in China produce around 650,000 vehicles a year.
See "More Labor Trouble in China for Honda", David Barboza, The New York Times, June 8, 2010