Strikes Spread in China

By Radio Free Asia
June 09, 2010

Does labor action signal the end of the low-wage era?

A series of high-profile labor disputes likely signals the end of low-cost manufacturing in China, as workers walk out at three Honda plants in the Pearl River Delta and at a Taiwan-invested machinery plant in Jiangsu, analysts and activists say.

In the latest strike in southern China's Pearl River Delta region, workers at a third Honda auto parts plant in Guangdong province took to the streets Wednesday, official media reported.

The strike at Honda Lock (Guangdong) came after Honda was forced to suspend production at two of its Chinese factories because of disputes at parts joint venture Foshan Fengfu and at a wholly owned subsidiary parts supplier.

Production was suspended Wednesday at the two factories of Honda joint venture Guangqi Honda Automobile Co., Honda said in a statement, citing "a labor dispute."

Foshan Fengfu is a joint venture between Honda subsidiary Yutaka Giken, which owns about 70 percent, and a Taiwanese firm called Moonstone Holding.

Located in Foshan, a city in southern China's Guangdong province where Honda has its joint venture with Guangzhou Auto Group, the company makes exhaust pipes and other parts for Honda's Odyssey, Accord, and Fit models.

An employee who answered the phone at Foshan Fengfu Autoparts declined to give details of the strike.

"It's not convenient for me to talk about this," the employee said.