Honda Jacks Up Wages At Strike-Hit Chinese Parts Plant

GUANGZHOU, China (Nikkei)–Honda Motor Co. (7267) has hiked wages around 30% at a Guangdong Province autoparts plant that was plagued by work stoppages last year, it was revealed Monday.

Average monthly wages for assembly line workers have been increased as much as 611 yuan to 1,921 yuan, or around 24,000 yen, at the automaker’s transmission factory in Foshan. An agreement was struck with labor this past March, with the pay raise taking effect the following month.

In the wake of the May 2010 strikes, the automaker lifted starting pay by 24%. Although raises have averted strikes, Honda has seen its production costs swell. The latest hike is due to a rise in prices and the local minimum wage, according to the automaker.

Nissan Motor Co. (7201) increased wages by around 10% at a joint-venture plant in Guangzhou this April. Across China’s auto sector, wages are estimated up roughly 10%.

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