Honda factories paralyzed as supplier strike continues in S. China
Honda Motor Co. halted production Wednesday at two Chinese factories as a walkout that began Monday continued at a parts supplier.
Two factories of Honda joint venture Guangqi Honda in Huangpu District and Zengcheng City, Guangzhou, capital of Guangdong Province, had to suspend production because of the strike at Foshan Fengfu Autoparts Co. Ltd. (Fengfu), a parts supplier, said Zhu Linjie, spokesman for Honda in Beijing.
A total of 120 workers were still on strike. Eight worker representatives were negotiating with the company, demanding a pay rise of 300 yuan (14.64 U.S. dollars) per month for each worker, Zhu said.
Fengfu, Guangqi Hongda's only supplier of mufflers and exhaust pipes, employs 489 workers, whose monthly salaries range from 1,500 to 1,800 yuan, Zhu said.
Fengfu asked workers to resume production late Tuesday while it planned a payment adjustment scheme. It claimed to have reached an agreement with worker representatives.
But workers rejected the offer Wednesday morning. It was not clear when the factories would resume production, Zhu said.
Fengfu is a joint-venture of Japanese company Yutaka Giken, a subsidiary of Honda, and Taiwan's Moonstone Holding Ltd..
