Friday, 4th June 2010
In Business In Japan,
Honda workers strike hits Japanese economy
A strike by Honda workers in China could spell bad news for the Japanese car marque, with demand for higher wages and better working conditions suggesting that there is low sentiment in the workforce.
Production has been much lower in China since Honda workers went on strike at the end of May. Honda had to close the doors of all of its Chinese operations after almost 2,000 workers took part in a walkout.
Honda workers are unhappy with current wages and are asking for a rise of 500 yuan a month (£50). Honda offered an increase of 24 per cent but this was not accepted.
The strikes have led some market analysts to note that the world could be seeing the end of the cheap Chinese-made car.
Japan's economy has been hit hard over the past year, with the global economic downturn and continuing issues with inflation levels both impacting market conditions.
Written by Kimberley Homer.
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