China Strikes Hit Toyota, Honda

Labor disputes test country's stability
By Jane Yager,  Newser Staff
Posted Jun 23, 2010 5:33 AM CDT
In this photo taken Tuesday, June 22, 2010, workers take part in a strike at the Denso Corp., a Japanese car parts supplier to Toyota Motor Corp., in Guangzhou in south China's Guangdong province.   (AP Photo)
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(Newser) – In the latest in a string of labor disputes at factories across China, Toyota was forced to halt production yesterday at an assembly plant because of a strike at Denso, a parts supplier in southern China. The Denso plant also supplies Honda factories, which may also run out if the strike continues, a Honda spokesman tells MSNBC.

Workers at the Denso factory are demanding a pay raise from about $180 a month to about $270. "This company makes lots of money and should share the profits," one of the striking employees says. Such strikes present a dilemma to the Chinese government, which has promised to raise factory wages but is eager to downplay news of protests. The disputes have arisen as young workers migrate from rural areas to factory jobs seeking a place in the growing urban middle class, then find low wages and undesirable working conditions. China's official trade union calls the strikes a key test of the country's stability.

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