Pay dispute continues to halt production in China
2 June 2010

Honda workers in China are continuing to strike over pay.

The workers are reported to be seeking a rise from around £190 to around £280 a month, and the strikes have been marked by some violent demonstrations.

Honda has reported agreed to a 24 per cent rise, with most of its 2400 workforce accepting the deal. However, 100 workers are reported to be holding out for a larger increase.

Strikes are technically illegal in China, but workers in the southern region of the country have become increasingly prone to action. Analysts suggest this is because they are increasingly aware of how much workers within other companies are paid around the world.

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2 June 2010

There are huge inflationary pressures building up in China now. Even with restrictions in internet access, it's not hard for Chinese workers to see that they are being ripped off.

It's in the Chinese governments interest to allow this strike to go on, and improve the conditions for workers in this zone. Looks as though the squeeze has begun on large foreign companies. Don't forget that a strong Chinese owned car manufacturing base is one of the economic targets of China.

I wonder if the government would have allowed the strike to continue if the car company was Chinese owned and not Japanese ?

2 June 2010

How long will it be before the Chinese workers see relative parity in wages with the western workers and companies, fantastic to see! This has so many implications for anyone manufacturing in China - no wonder they try to surpress the internet over there.

If this means goods over here will cost more than so be it, we've had many imported goods too cheap for too long, we need to consume less anyway and if workers get a fair wage and better conditions as a consequence then thats a much better solution.

Plus if all the countries around the world had similar labour/manufacturing costs then we might actually get heavy industry back in this country.

2 June 2010

I just passed by looking for some news but, I think I MUST spare some time herein explaing this strike. I am an editor here in Guangzhou, China. Once the strike took place, I have been in following the case. I am going to tell the true story behind it.

The strike was triggered by local workers' finding that their salary was almost 50 times less than Japan workers in the plant. By comparison, our Chinese workers' pay was around $ 176 a month, yet the Japanese workers who are in very ordinary positons get pay around $ 7300 a month including comprehensive welfare in wide range. And it would take 8 to 10 years for these staff to get pay raised even to a level of $ 290.

Yet it is not finished! As long as one is ever in the business of imp. and exp., he/she knows how the cost in China flies. What the $ 176 per month pay stands for? It just balances the monthly mandatory living cost for food and accomadation. If you need entertainments like KTV or sightseeing, sorry, no way for such salary. For your reference, the average pay for a fresh university graduate here in south China is about $ 440 per month, which is thought to be just a fare one, not good at all!

More importantly, plz note that HONDA plant is a joint venture by Honda Motor Co. and Chinese Government! Every foreign motor company setting up a plant in China would need Government's permission! And this permission could be understood simply as Government's stock share. Thus, if you are saying, Chinese Government is letting the staff doing that STRIKE, you must know nothing about the truth!

Quite on the contrary, Government is stopping the news flowing out, only CCTV was allowed into the plant but, the team would not reveal the truth to the volks. The so-call interview would only appear on the internal press inside CCTV for the board and the Government heads. If I am not a media man, I would never know this thing.

Last, the violent was caused by HONDA's first action towards the strike. Two workers were heat to the ground, luckily, not dead. Whom do you think those men were? There are always some civil unordinary guard work for the employers, I mean the company owners, in the name of SECURITY GUARD, who only show up during strike or ask for payment. Yet, the Jap and the Gov never appear on the bad side but only say a few words behind, and things ends up in this way, so they are the wire-pullers.

Hope it helps you understand the case.

2 June 2010

I own a Honda and I very pleased with it but I'm horrified at the large difference in pay and conditions of these workers. Lets hope this gets more coverage in the press over here and though out the world.

3 June 2010

Thanks hondapan for the info, yes it is disgusting the way they sound like they are being treated. I'm sure a lot of companies need to look at their Chinese and Indian operations. I for one know that cars can't be built for the low costs that they are without something or somebody being exploited in the process. Please keep your reports coming!

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