evan / 2010-06-09
A report by the state-run Xinhua news agency said the striking workers ended the two-day action late Tuesday evening after reaching an agreement, but Bloomberg News cited Japan-based officials at a company that owns a stake in at Foshan Fengfu as saying that the strike had not ended and the Xinhua account was inaccurate.
Production at two of Honda's assembly plants that depend on components produced by Foshan Fengfu was halted from Wednesday, reports said.
The strike is the second such disruption to Honda's supply chain in the past month and comes a week after Honda agreed to raise wages by 24% at a wholly-owned plant in China that producers transmissions and other automotive components.
Wages to double?
In a separate development, Japan's Nikkei business newspaper reported Wednesday that Beijing is weighing up plans that could double average workers wages over five years, starting in 2011.
Beijing is considering the policy initiative as a way to help cool growing labor friction, particularly in coastal areas, the report said.
Chinese officials are worried that if left unaddressed, these disputes could lead to rising social instability, it said.
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