Denso China plant labour dispute resolved -workers

HONG KONG, June 25 | Fri Jun 25, 2010 8:34am EDT

HONG KONG, June 25 (Reuters) - A labour dispute at a Chinese factory of Denso Corp (6902.T), a parts maker affiliated with Toyota Motor Corp (7203.T), was resolved after the company agreed a pay rise across the board, workers said on Friday.

Denso (Guangzhou Nansha) Co Ltd agreed to give workers a pay rise of 800-900 yuan per month. Most workers currently earn 1,100-1,300 yuan per month.

"We have all agreed to the settlement," the worker told Reuters in a telephone interview.

Workers at Denso (Guangzhou Nansha) Co Ltd returned to full production on Friday on the assumption they would reach an agreement on pay.

The company halted supply of fuel injection components and other parts to Toyota, Honda Motor Co (7267.T), and other car makers on Monday after workers left production lines demanding higher wages and better benefits.

The strike forced Toyota's plant in Guangdong province, capable of producing 360,000 vehicles a year, to stand idle since Tuesday.

Toyota said it planned to resume production at its halted assembly plant on Monday. [ID:nTFD006456] (Reporting by Alison Leung; Editing by Dan Lalor)

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