Strike shuts Honda's China assembly plants: report

Wed May 26, 2010 2:09pm EDT

(Reuters) - Honda Motor Co (7267.T) was forced to shut all four of its Chinese auto assembly plants after workers at its parts factory in southern China walked off the job, demanding a wage hike, the Nikkei business daily said.

Talks between labor and management broke down Monday and Honda is unsure when production will resume, the daily said.

Output has been suspended since Monday's night shift at both the Zengcheng facility, which produces the mainstay Accord sedan, and the Huangpu plant, the paper said.

At the Wuhan facility, which churns out the Civic and other offerings, production came to a standstill beginning with the night shift Wednesday, the Nikkei said.

The protests were triggered by workers at the company's transmission facility in Foshan in Guangdong Province. Monthly salaries for factory employees there average 1,500 yuan, or just less than 20,000 yen, the Nikkei said.

The workers are seeking a raise to 2,000 yuan to 2,500 yuan, which is on a par with what employees at Honda's auto assembly plants receive, the paper said.

(Reporting by Vinay Sarawagi in Bangalore; Editing by Prem Udayabhanu)

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