China labour strife continues

TOYOTA    HONDA    STRIKE    SUPPLIER

China - Toyota and Honda have reported a halt in production at their major car factories in south China due to a series of strikes over pay at parts suppliers in Guangdong and other parts of China.

Denso (Guangzhou Nansha) Co Ltd, which supplies fuel injection equipment and other parts, have stopped shipping on Monday.

"The salary is only 1,300 yuan (US$191) a month, including meal subsidies, while my rent costs me 200 yuan a month," said a worker from Hunan Province.

Another worker revealed not feeling respected by the human resources department, reported Reuters.

The strikes represent the vulnerability of "just-in-time" supply chains, especially where rural migrant workers are impatient with wage levels as they believe them to be lagging behind the booming economic growth and company profits.

"The automotive sector in China, especially for foreign companies, is highly profitable, but there hasn't been an appropriate scaling of company profits and workers' earnings," said Chang Kai, a labour law professor at Renmin University in Beijing.

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