Things are all okay now at Honda Auto Parts Manufacturing Co in China as Honda Motor Co. have managed to convince most of its Chinese workforce to continue working with a pay increase of about 24 percent along with benefits.
This is still slightly lower than the 53% increase to 2,300 yuan a month that the worker reps were trying to secure, according to two strike leaders who by the way were fired by Honda after the walkout began on May 17th.
According to Honda, there were still “several dozen’ employees who haven’t accepted the company’s offer and are trying to “disrupt work at the factory”. Nonetheless, most of its 1,990 workers at the Honda Auto Parts Manufacturing Co. plants will be returning to work allowing the company to partially restart production of transmissions and engine gears.
This will also allow Honda to start operations at all four of the Chinese joint venture final-assembly plants as it was previously shut down due to lack of key components. It looks like Honda have to rethink its calculations about labour practices in China, which previously was an attractive place to produce cars due to cheap costs.