Honda production halted because of supplier strike

10 June 2010

10 June 2010 | Andy Allen

Walkouts at a major Chinese supplier has forced Japanese carmaker Honda to temporarily shut one of its three factories in the country.

A Honda spokesman confirmed that the Guangqi plant was shut yesterday as a result of the strike but that production had partially resumed since then. It is the second time in two weeks the company has been hit by industrial action in China.

The dispute over pay occurred at Foshan Fengfu Autoparts, which is part-owned by Honda.

Previous action at a transmission plant in southern China caused the company to close all three of its factories. A spokesman confirmed the dispute was resolved by a settlement that granted workers a pay increase of “about 20 per cent”.

The strikes are part of a growing trend of unrest among workers at Chinese factories which supply major Western companies.

A spate of suicides at Chinese factories owned by Taiwanese electronics manufacturer Foxconn, which supplies companies such as Dell, HP, Apple, Sony and Nokia, were allegedly because of poor working conditions. Worker protests have followed the deaths, and the company has since increased wages by 30 per cent. Foxconn denied that the increase was as a result of the suicides.

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