Honda shuts down Chinese plants due to workers strike

Honda shuts down Chinese plants due to workers strike

Honda has shut down production in all its four plants in China due to workers from a parts manufacturing unit going on strike. 1,850 workers making transmissions and engine parts at Honda Auto Parts Manufacturing Co in Foshan, Guangdong walked out, demanding for higher pay that’s on par with staff from the main car plants. They want salary to be increased to between 2,000 Yuan ($293) and 2,500 Yuan, from the current 1,500 Yuan.

As a result of this strike, Honda, Japan’s second-biggest carmaker, was forced to close two plants in Guangzhou, Guangdong province and factories in Guangzhou and Wuhan, Hubei province. Honda, representatives from the disgruntled employees and government officials in Foshan are having talks to end the strike, and settle the issue, Honda has said.

The parts factory started operating in 2007 and makes transmissions for the Accord, City, Odyssey and Fit models, according to the company. Honda plans to raise production capacity in China by 28% to 830,000 vehicles a year by the second half of 2012 from 650,000 and introduce two new models as car demand grows in the country. Honda sales in China accounted for 17% of its global sales last year. It’s not known how many vehicles have been affected by this problem.

“China is experiencing a labour shortage that’s shifting the natural bargaining power to workers,” said Chang-Hee Lee, a Beijing-based industrial relations specialist at the International Labour Organization.

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Jacob Alexander

Jacob Mathew Alexander has been a motoring nut for as far as he can remember and has recently turned his passion into writing. After spending some time in the same industry in the UK, Jacob's work is from a slightly different perspective.

 

Comments

  • endreyip on May 29, 2010 at 2:21 pm

    1500 Yuan = RM750. Real blood sucker.

    Like or Dislike: Thumb up 0 Thumb down 0
    • paultan fan on May 30, 2010 at 12:37 pm

      how much salary for factory worker in Malaysia? salary for degree holder avarage only RM 1200 – RM 1400.

      Chinese worker want
      RMB 2, 000 ( RM 1, 000)
      RMB 2, 500 ( RM 1,250 )

      RMB 1,500 is salary for worker without degree or degree holder?
      if without degree holder, I thk China is not cheapest labour country. alamost at par with our country. I saw an advertisement salary for factory worker only RM 500 +++. but its electronic factory lor with spm level

      Like or Dislike: Thumb up 0 Thumb down 0
      • staff on May 31, 2010 at 6:02 pm

        Sure you are living in Malaysia?

        Degree holder average salary is Rm 1800~2400…

        Like or Dislike: Thumb up 0 Thumb down 0
      • _xXx_ on May 31, 2010 at 6:08 pm

        hey I have got lotsa pedigree, I want RM50k a month

        Like or Dislike: Thumb up 0 Thumb down 0
      • sharon adlaon on Jun 02, 2011 at 4:51 pm

        hi can you help me to apply a job as a factory worker in malaysia

        Like or Dislike: Thumb up 0 Thumb down 0
  • normal ppl on May 29, 2010 at 3:21 pm

    in my opinion accord and other companies go there is just simply they have cheaper workers right?
    if u pay 2500 to workers in Japan, why open another plant in China and also pay 2500??? they might as well just open another factory in Japan.
    of course i understand there is other issues like tax and all that…

    Like or Dislike: Thumb up 0 Thumb down 0
  • ezracopters on May 29, 2010 at 3:48 pm

    well then, welcome to malaysia, slightly higher pay..but surely u’ll be protected by laws. plus well skill labour too haha

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  • wow..i think malaysian should do this is want gov not to raise fuel price..hehe..demand Rm2.50 for RON100..huhu

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  • azraI on May 29, 2010 at 4:36 pm

    The cost of living in China is much much lower then. Honda, just concentrate on your Alor Gajah plant. Briang it all here and give Malaysian more jobs. There is also no strike in Malaysia.

    Like or Dislike: Thumb up 0 Thumb down 0
    • lolypop on May 29, 2010 at 5:19 pm

      you are definitely wrong… for their salary of 1500 yuan, and fuel price of ~6.80 yuan/liter (RON93), how difficult for the poorer survive?? The huge gap for the rich and poor is well known..

      Like or Dislike: Thumb up 0 Thumb down 0
    • S.Roma on May 30, 2010 at 7:36 am

      RM 3.244 / Litre

      Like or Dislike: Thumb up 0 Thumb down 0
    • paultan fan on May 30, 2010 at 1:20 pm

      but they can buy a lot of thing at very cheap price. original Adidas only cost u RMB 100 ( RM 50 ) compare to Malaysia you must pay at RM 300 to buy an original Adidas, Nike. If you not believe me, go to China. You can get a car with 1.3 liter engine shape like Kancil and its only cost u lowe than RMB 28, 000 ( RM 14, 000 ). Also house is Cheap compared to Malaysia. And also food is cheap.

      Like or Dislike: Thumb up 0 Thumb down 0
      • Paul, I think in China, branded items are more expensive than here. Adidas, levis etc r more expensive, But true, cars are cheaper there. I asked taxi driver there before and he said Toyota Camry cost about RMB180,000 (about RM90,000). But..you must pay cash..hahaha

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    • squawk on May 30, 2010 at 4:54 pm

      Cost of living in Guangzhou isn’t exactly cheap. And nearby Foshan is an up and coming city feeding off Guangzhou’s excess.

      Of course, there’re quite a number of new millionaires in GZ due to the manufacturing boom. I know someone who bought his RMB2m+ apartment with cash. And he’s not even 30.

      Like or Dislike: Thumb up 0 Thumb down 0
  • azrai on May 29, 2010 at 4:37 pm

    The cost of living in China is much much lower then. Honda, just concentrate on your Alor Gajah plant. Bring it all here and give Malaysian more jobs. There is also no strike in Malaysia.

    Like or Dislike: Thumb up 0 Thumb down 0
    • alamak on May 29, 2010 at 5:47 pm

      U must be kidding….Their cost of living increased like rocket.

      Like or Dislike: Thumb up 0 Thumb down 0
    • it is not so much about low cost and cheap labour and no strike. It is about having access to the world’s biggest market. If the factory is located in Malaysia, ultimately Honda cars will be more expensive in China because of the ‘import’ tax imposed by China.

      Like or Dislike: Thumb up 0 Thumb down 0
    • Lancastrian on May 31, 2010 at 1:35 pm

      China cost of living cheap ? MuahahahahHhahahahaha HHahaha..

      Like or Dislike: Thumb up 0 Thumb down 0
  • cl_qwertyuiop on May 29, 2010 at 4:48 pm

    Can’t believe this happen to Handa Wuhan. Gone there to Consult for a few days this Febuary for Honda Spiroh project and this happen. Never knew this is coming.

    Like or Dislike: Thumb up 0 Thumb down 0
  • squawk on May 29, 2010 at 4:57 pm

    A country with 1.5b population is facing a labor shortage? So soon?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Good for Honda.

    With a higher salary, even a chinese factory worker will be able to buy a car… ;)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Edmond on May 29, 2010 at 5:25 pm

    but you need to give out your 30% share first…hee hee

    Like or Dislike: Thumb up 0 Thumb down 0
  • Head Hunter on May 29, 2010 at 6:29 pm

    The workers should bring Ip Man to kick those Japanese @rses for more pay!

    Like or Dislike: Thumb up 0 Thumb down 0
  • ko malu saje... on May 29, 2010 at 8:03 pm

    soon ip man will come to the rescue

    Like or Dislike: Thumb up 0 Thumb down 0
  • bmpower on May 29, 2010 at 8:10 pm

    that’s why malaysia is better.

    but tipical japanese company.

    PROFITS TO THE MAX!

    Like or Dislike: Thumb up 0 Thumb down 0
    • monash.u on May 29, 2010 at 11:25 pm

      yeah! which company not maximise profit??? company for charity like community chest r?

      Like or Dislike: Thumb up 0 Thumb down 0
      • U THINK THE JAPS CAN GO SO FAR IF THEY OPERATE LIKE SIME DARBY?

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      • bmpower on May 30, 2010 at 11:30 am

        yes. true.

        but making peoples suffers are bull$hit!

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      • Tiadaid on May 30, 2010 at 12:31 pm

        Profit taking is okay as long as it is not at the expense of the workers and consumers. Most companies go to China so that they can exploit the loq labour cost and gain incredible profits.That is ethically wrong

        Like or Dislike: Thumb up 0 Thumb down 0
    • segambut on May 31, 2010 at 9:45 am

      This is what we call capitalism.

      Like or Dislike: Thumb up 0 Thumb down 0
  • mirror mirror on May 29, 2010 at 9:29 pm

    Actually the purchasing power of 1,500 yuan in big cities like guangzhou, wuhan and shenzhen is not too different from that in kl.

    Like or Dislike: Thumb up 0 Thumb down 0
  • rexis on May 29, 2010 at 11:00 pm

    A degree holder is given RM1600 basic salary here, should they go for a strike?

    Like or Dislike: Thumb up 0 Thumb down 0
    • i only get pay 1400 last time for degree holder.. S*** that s’gpore company..why i not stike last time? Because i have no choise..in china,they have many choise,that’s why they strike.

      Like or Dislike: Thumb up 0 Thumb down 0
      • Manemane on May 30, 2010 at 3:27 pm

        wow,ur english’s terrible.what kind of degree r u holding??

        Like or Dislike: Thumb up 0 Thumb down 0
        • paultan fan on May 30, 2010 at 6:53 pm

          aiyoo. kalau you punya perception english ok degree nya bgs. so totally you wrong bro. adakah pengusaan english jd ukuran ilmu yg you ada? so apa cerita UKM yang tak guna BI. yang memakmurkan BM. dan apa cerita org2 Japan, France, German? adakah mereka semua tak layak dpt degree hny tak dpt kuasai BI ngan baik

          Like or Dislike: Thumb up 0 Thumb down 0
        • yes, my english is worst,but not other subject.. I only kampung boy,it’s normal if english only get 7 in spm.. Not like town boy like u,aggrogant..

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  • S.Roma on May 30, 2010 at 7:34 am

    1500 = RM715.5973

    2000 = 954.1298

    Like or Dislike: Thumb up 0 Thumb down 0
    • paultan fan on May 30, 2010 at 12:33 pm

      how much salary for factory worker in Malaysia. salary for degree holder avarage only RM 1200 – RM 1400.

      Like or Dislike: Thumb up 0 Thumb down 0
      • bekas kilang on May 30, 2010 at 5:41 pm

        no la.. that was those days.. now more higher.. average fresh grad for deg holder now already rm2500-rm3000

        Like or Dislike: Thumb up 0 Thumb down 0
        • paultan fan on May 30, 2010 at 6:54 pm

          ha3. u pandai buat lawak la maa. kalau di KL maybe tp you try jenguk2 di kilang2 biasa. byk yg bawah rm 2000

          Like or Dislike: Thumb up 0 Thumb down 0
          • bekas kilang on May 31, 2010 at 11:32 am

            Sorry2 my mistake.. you’re right.. i think that’s probably valid for KL and Penang only :(

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  • on-and-off on May 30, 2010 at 8:51 pm

    “..salary to be increased from 2,000 Yuan ($293) and 2,500 Yuan, from the current 1,500 Yuan. ”

    you meant to write:

    “salary to be increased TO 2,000 Yuan ($293) and 2,500 Yuan, from the current 1,500 Yuan. ”

    right?

    Like or Dislike: Thumb up 0 Thumb down 0
  • haha boy on May 31, 2010 at 2:02 pm

    Good job China people.

    I hope one day China cars will overtake all Toyota and Honda japanese cars in the world and overtake them globally in sales.

    Kick ass all these japanese ! China must strike back……dont forget how the japanese treated your anchectors during the war…..

    Like or Dislike: Thumb up 0 Thumb down 0
  • squawk on Jun 01, 2010 at 12:22 pm

    Settled. Workers will get about 25% pay increase. Factory should be running again within a week.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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