Monday, June 27, 2011

Honda has hiked wages around 30% at a Guangdong Province autoparts plant that was plagued by work stoppages last year, it was revealed Monday.

Average monthly wages for assembly line workers have increased as much as 611 yuan to 1921 yuan or around 24000 yen at the automaker's transmission factory in Foshan. An agreement was struck with labor this past March, with the pay raise taking effect the following month.

In the wake of the May 2010 strikes, the automaker lifted starting pay by 25%. Although raises have averted strikes, Honda has seen its production costs swell. The latest hike is due to a rise in prices and the local minimum wage.

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