June 3, 2010

Honda in China going back to work

CARS - Honda's operations in China are going back to work today after 3 weeks of striking workers demanding a "living wage". They eventually got a 24% wage increase, but its a sign of growing unrest in China's booming automotive market.

Chinese autoworkers are in high demand and there's growing competition between automakers for who can get the most skilled, experienced employees and keep them happy. Its resulted in driving wages higher because these workers know they're in demand and can easily go to another car manufacturer and get paid more if they want to.

Its a growing sign of labour disputes in China's red hot economy where everything is booming and inflation is starting to put stress on workers who rarely see wage increases.

For example Foxconn, which manufactures parts for Apple's iPhone, announced a 30% raise for its workers, following a spate of suicides at its Shenzhen factory when workers realized they were basically slaves and powerless.

The big trick however is that in China these events rarely make the news inside the country. The Chinese government wants to prevent workers from realizing they can strike for better wages so they keep such information from being released in the state-controlled media.

A mass hike in salaries would be a good thing for China's growth, creating a larger domestic market and less dependent on exports.

In related news...

General Motors and Ford report double-digit growth in China sales in May and new monthly records. GM sales are up 48.7% compared to May 2009, selling 196,400 vehichles in May 2010. GM says total sales for January to May 2010 rose 53.9% over a year earlier to 1,032,665 vehicles. Ford is reporting sales up 17.8% compared to May 2009, selling 23,742 vehichles in May 2010.

China overtook the United States in 2009 as the biggest auto market by vehicles sold.

1 comment:

  1. It's time that Entrepreneurs realize that they should invest in people and happy employees are an asset.
    This is the modern world and China should not be using slave labor.


Comments containing links will be marked as spam and not approved. We moderate every comment. If you want to advertise on this blog it is $30 per link.

Affordable Website Design & SEO

Looking for a quality professional website designer? Why not go where the smart money is?! Toronto Website Design and Toronto SEO. Get free SEO advice from people who really know the business.

Featured Posts

The Sarcasm Symbol
Ever had some confusion online or with your cellphone when someone fails to catch the sarcasm? Well now with the SarcMark you can ge...
Behold, the Scorpion Hydrogen Supercar
CARS - To the right is the future of supercars... it is a hydrogen supercar called the Scorpion. The Scorpion from Ronn Motors in Texas is t...
Documents show Stephen Harper misusing public funds
CANADA - According to 950+ pages of documents obtained by the Canadian Press under the Access to Information Act the Privy Coun...
Pink's Rosie the Riveter
ENTERTAINMENT - What I like about this video is how it meshes different social movements like feminism, veganism, anti-capitalism...
California's Dustbowl
ENVIRONMENT - The photo on the right is a farm in California that has been put up for sale. Its just one of thousands of farms that are n...
Is Steampunk the New Goth???
GOTHIC - Watch out what you see on the subway late at night because while in 2001 you might have seen some pretty freakish goths, by 20...
Do you have enough Ice Water in your diet?
HEALTH - A Calorie (large C) is a measurement of the amount of energy needed to raise the temperature of a litre of water (1 kg's worth) ...
North Korean timeline towards Inevitable War
POLITICS - The following is timeline of events that have occurred on the Korean Peninsula. 1945 - Japan surrenders to the United States a...
Judgment Day is Tomorrow, so sayeth Cult
RELIGION - According to a cult based in California, Judgement Day is tomorrow (May 21st 2011) and Jesus Christ will return to the Earth a...
Sex in Space Forbidden
SEX/TECHNOLOGY - Sex in outer space is a big no-no according to NASA. Not for professional astronauts at least, but the growing numb...

Popular Posts