Saturday, June 12, 2010

Factory strikes spread in China


June 11, 2010
http://www.chinaeconomicreview.com/
Strikes in Chinese factories have now spread to three Japanese-owned and three Taiwan-owned facilities in the wake of successful action at a Honda (HMC.NYSE, 7267.TYO) plant in Guangdong province last week, the South China Morning Post reported. Workers at Honda Lock in Zhongshan, which makes car locks and key sets, are into the second day of their strike after rejecting an offer of a RMB100 (US$14.60) pay rise. They are demanding parity with workers at Foshan-based Honda Autoparts who were last week granted a RMB600-plus increase. In Shanghai, a Taiwan computer parts manufacturer affiliated with Foxconn (2038.HK, 2317.TWSE) had to stop production over contract disputes, while in Xi’an, Shaanxi, Japan’s Brother Industries (6448.TYO) has halted work at two industrial sewing machine factories due to a strike. There have already been reports of clashes between workers and police at a sports good factory in Jiujiang, Jiangxi, and at a rubber factory in Kunshan, Jiangsu, both of which are Taiwan-owned.