Honda raises wages of workers in China

Honda raises wages of workers in China Emblems and Logo
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Honda, Japan’s second largest automaker, will raise the wages of its workers in China following a labor strike that occurred just this past week.

The workers will receive a 24 percent pay increase to 1,910 Yuan per month, Honda said today in a statement to Business Week. Most workers have accepted the new raise, but a few are still not satisfied. Talks continue with those few workers. This raise is still a little shy of the 2,000-2,500 Yuan the workers have been requesting.

Production at the four Honda plants that were shut down due to the strike will remain suspended until at least June 2, with plans beyond that date to be decided tomorrow, Honda said to Business Week. Production of manual transmissions at the parts plant resumed today.

Honda shut down all four of its auto assembly plants due to a labor strike that began on May 17 when Honda shut down its first plant. On May 24 and 26, Honda closed its remaining three factories in Guangzhou and Wuhan. The loss in production may cost Honda up to 3,000 vehicles daily, analysts said.

“My guess is that it will take less than a week to get production back at full capacity once the strike is resolved,” Tianshu Xin, managing director at IHS Global Insight in Shanghai, said prior to the settlement announcement. Honda will likely add shifts to make up the lost production, he said to Business Week.


Source: BusinessWeek

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  (806) posted on 06.2.2010

Well they should be, Honda is getting more and more profit specially in Euro. The Honda vehicles is one of the most favorite and used car in euro.

  (433) posted on 06.1.2010

Well that’s because honda employees had their strike and this really help to wake up honda that’s it’s time to reaise the wage.

  (134) posted on 06.1.2010

Well, in that case I think those workers achieve their request of wages increase, but I think $280 is still ain’t enough to make those workers grows.

  (1332) posted on 05.31.2010

Oh that was a good news from Chinese workers. Maybe HONDA motors are getting a lot of profit with their bast cars.

  (13) posted on 05.31.2010

Interesting! I wonder if this will raise the prices of Honda’s cars? Wait and see!

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