Pay dispute at Honda plant settled, production resumed

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Labor dispute at a spare parts plant of Japan's second-largest automaker Honda in south China's Guangdong Province has been settled, the company and some employees confirmed.

Honda Auto Parts Manufacturing Company, a factory wholly-owned by Honda Motors Co. in Foshan City, Guangdong, said in a statement late Friday that representatives from its management and workers had reached a consensus on pay after days of consultations.

The document gave no details about pay rises or any new remuneration packages, though it offered an apology of the company's management for "inconvenience" as a result of the dispute.

A worker, who only gave his surname as Li, told Xinhua Saturday the plant had agreed to increase wages by an additional 134 yuan a month.

"Plus the 366 yuan increase it offered earlier this week, each worker expects a 500-yuan (73.5 U.S. dollars) rise for monthly salary," Li said.

Workers at the spare parts plant went on strike on May 17 demanding a pay rise of 800 yuan a month. Honda had to close four assembly plants, including three in Guangdong and one in the central Hubei Province, due to lack of supplies of gear-boxes and other accessories as a result.

The workers returned to work Wednesday morning while wage negotiations continued. All four assembly plants had restarted operation by Saturday.

A Trade Union official in Foshan's Nanhai District, where the parts plant is located, said earlier the average wage of the striking workers was 1,200 yuan a month, slightly higher than the local average but far below the workers' expectations.

The company said it would seriously look at its management processes, improve communication with the workers and improve labor relations.

Its management also apologized for any "inconveniences" caused by the dispute.

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