Honda Motor Co. in China continues to have problems as its plant workers continue with their strike.

A union leader announced that they are not planning to go back to work soon, and this means that the Honda plants may stay closed until the problem is resolved.

About 1,850 workers at the Honda transmission factory in Foshan, Guangdong went on strike on May 17. They were asking for salary increases because, at the moment, they only receive 900 to 1,500 yuan a month. They wanted it increased to 2,000-2,500 yuan a month. As a result of this, four plants were shut down.

In a letter sent to its interns dated May 27, Honda asked them to stay on their jobs and not join the strikers. It reportedly promised to give pay increases of over 400 yuan per month. However, Yasuko Matsuura, a Honda spokeswoman declined to confirm the wage increase offer. She only said, “We’re telling our interns we’d like to have them back if they’re willing to work.”

Analyst Yasuhiro Matsumoto from Shinsei Securities Co. in Tokyo said, “China is quickly turning into a developed market from an emerging market, and labor costs will rise fast. Carmakers have no choice but to accept cost and wage increases if they are to continue business in the market.”

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