Honda offers strikers 24% raise

Honda Motor Company (HMC.NYSE, 7267.TYO) announced it has offered striking workers a 24% increase in pay and benefits to end the strike that has paralyzed the carmaker’s four plants in China, the Wall Street Journal reported. Strikers have demanded a 53% pay raise which would bring their total compensation package up to RMB2,300 (US$337) per month. Honda said that the majority of the 1,900 workers who have gone on strike at a plant at a Guangdong plant accepted the compromise and returned to work yesterday afternoon, allowing Honda to "partially restart" production of transmissions, but that several workers have refused the offer and are trying to disrupt work at the factory. In addition to hiring experienced laborers to build car parts at the Foshan plant, Honda has also hired nearly one-third of its work force from high schools and vocational schools. These young employees are paid less than the local minimum wage, which is currently US$134 per month. Labor experts say the concession is likely to put pressure on other manufacturers in China. China accounts for 20% of Honda’s global car sales.