Honda's China plants resume production, wage negotiations continue

• Source: Xinhua
• [17:10 July 16 2010]
• Comments

Japan's second-largest automaker Honda said Friday four assembly plants in China's Guangdong and Hubei provinces were to resume production, while negotiations over pay continued.

Two plants of Guangqi Honda, a joint venture with the Guangzhou Auto Group in Guangdong, Dongfeng Honda's factory in Hubei, and an exports-only factory in Guangdong would restart operations Friday and Saturday, Honda Motors Co.'s China arm said in a press release Friday.

The resumption came after workers of Nanhai Honda Auto Parts Manufacturing Company, a factory wholly-owned by Honda Motors Co. in Guangdong's Foshan City, ended a two-week strike and returned to work Wednesday, it said.

The workers had been on strike since May 17, demanding a pay rise. Honda had to close the four assembly plants due to lack of supplies of gear-boxes and other accessories as a result.

Until Friday, the wage negotiations were continuing, company sources and Honda workers said.