June 25, 2010 / 5:41 AM / 9 years ago

FACTBOX-China labour strikes developments, June 25

HONG KONG, June 25 (Reuters) - Discontent among China’s estimated 150 million strong pool of migrant workers, who have helped power the country’s growth, threatens to undermine the government’s legitimacy and erode the nation’s competitiveness as a low-cost factory hub. [ID:nSGE65103V])

Following are recent developments — 1245 GMT on Friday (* new or updated items):

* Workers at a Denso (Guangzhou Nansha) Co Ltd factory said they had reached agreement with management on Friday after Denso promised a pay rise of 800-900 yuan per month. [ID:nTOE65O067]

Workers had returned to full production earlier on expectations they would reach an agreement.

The factory, owned by Japan’s Denso Corp (6902.T), supplies fuel injection equipment and other parts. It had stopped shipping to customers on Monday.

Pay for most workers is 1,100-1,300 yuan ($162-$191) a month. Technicians’ basic salary is around 3,000 yuan before the pay rise, according to one Denso worker.

Toyota Motor Corp (7203.T) said on Friday it planned to resume production at its 360,000 units-a-year joint venture car plant in Guangzhou on Monday, expecting supply to flow again from the Denso factory. The GAC Toyota Motor factory had been suspended since June 22.

- A 1-day strike at NHK-UNI Spring (Gungzhou) Co Ltd ended late on Wednesday. The plant, 60 percent-owned by Japan’s NHK Spring (5991.T) and 40 percent by a Taiwanese firm, makes suspension springs and stabilisers for nearby assembly plants of Honda Motor Co Ltd (7267.T), Toyota and Nissan Motor Co (7201.T).

Honda said production at south China car plants, suspended due to the strike, restarted on Thursday. Media had reported a Nissan factory in Guangzhou halted production briefly on Wednesday because of the walkout. [ID:nTST000228]

- Toyota’s Tianjin factory, held jointly with Chinese carmaker FAW (000800.SZ), resumed output on Monday after the strike-hit Toyota-affiliated parts maker TOYODA GOSEI CO (7282.T) said it reached an agreement with workers. Toyoda Gosei said workers agreed to extra allowances for working in the summer heat and for a perfect attendance record, on top of an original 20 percent wage increase.

- Honda affiliate NIHON PLAST (7291.T) said on Monday it settled a labour dispute with workers at its Zhongshan plant, which produces plastic parts including steering wheels. The plant resumed production late last Friday after a strike the previous day. [ID:nTOE65K01Y]

- Denmark’s Carlsberg (CARLb.CO) said a strike which began late last week at a brewery it part-owned in the southwestern city of Chongqing ended when workers returned to work on Friday (June 18).

- Honda saw an unusually long 3-week stoppage at its wholly owned parts factory in Foshan when 1,900 workers downed tools demanding better pay. After violent clashes and a management move to hike pay by 24 percent, most returned to work on June 4.

- Some 1,500 workers at Honda parts supplier Honda Lock, walked off the job on Wednesday (June 9), returning on June 15. (Compiled by Alison Leung in Hong Kong, Valerie Lee in SINGAPORE and Chang-Rarn Kim in TOKYO; Editing by Erica Billingham)

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