Thursday, 2 December 2010

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Underpaid Chinese workers go on strike against Japan's Honda Motors. Is this a good idea?

The Japanese automobile giant was lured by Chinese authoritarian government to open manufacturing bases in China to take advantage of low cost labor. The pay of Chinese workers employed with Honda is far far better than what Chinese manufacturers pay.

Recently workers in a Honda transmission factory have resorted to strike and are demanding huge increase in their pay. Obviously these moves are being orchestrated by the Communist Party of China as all labor unions in China are affiliated with CCP.

http://www.nytimes.com/2010/05/29/business/global/29honda.html?ref=global-home

Shouldn't the Chinese government start with the Chinese manufacturers who pay a pittance to the workers and have no regard for any of the labor laws? Why target the foreign multinationals who offer a far better package and working environment than their Chinese counterparts?
http://answers.yahoo.com/question/index?qid=20100529012646AAIUyay


There are pros and cons. If such labor unrests are allowed to continue the multinationals may move their manufacturing elsewhere that will hurt Chinese interests in the long run.


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