UPDATE: Strike Hits Omron's Factory In Southern China -Xinhua
21 Luglio 2010 - 4:03PM
Dow Jones News
Workers at a southern China factory owned by Japanese firm Omron
Corp. (6645.OK) went on strike Wednesday and demanded higher
salaries, state media reported, adding to a spate of labor disputes
that have come as wages rise in parts of China.
Wage hikes in China at companies like Hon Hai Precision Industry
Co. (2317.TW) have helped fuel speculation that companies could
increasingly shift their manufacturing operations from China to
other countries.
An undetermined number of workers at Omron (Guangzhou)
Automobile Electronics Co.'s factory in Guangzhou staged a walk-out
to pressure the company to raise their monthly salaries to CNY1,800
each from CNY1,300 ($191), the state Xinhua News Agency said,
citing local sources, adding Omron supplies electronic components
to Honda Motor Corp. (HMC) and Toyota Motor Corp.(TM).
The company's management is in negotiations with workers, the
sources were cited as saying.
The strike comes one day after Chimei Innolux Corp. (3481.TW),
an affiliate of Hon Hai, said a contract worker fell to his death
at its production plant in Foshan, a city in southern China's
Guangdong province.
In June, Hon Hai, a contract electronics maker, raised wages for
its staff after 10 Hon Hai workers in the southern city of Shenzhen
jumped to their deaths. Recent wage hikes have also affected
companies including Yum Brands Inc. (YUM), Honda and Toyota.
Labor costs this year have risen between 20% and 25% in the
Pearl River Delta and the Yangtze River Delta, two major
manufacturing regions that extend inward from China's east coast, a
spokesman for China's Ministry of Industry and Information
Technology said earlier this week.
In a sign of official concern about recent labor unrest, South
China's Guangdong province on Wednesday reviewed a draft of the
country's first law covering labor disputes and wage negotiations
amid efforts to ease labor tensions in the country, according to
another Xinhua report.
One of the major purposes of the revised draft of The Regulation
on the Democratic Management of Enterprises in Guangdong is to
establish a legally binding wage negotiation mechanism, Xinhua
said. Among the regulation's 83 articles, 25 concern wage
negotiations.
The draft law says the relevant union should organize wage
negotiations between elected worker representatives and the
employer when more than a fifth of workers demand a pay rise.
If the employer refuses to hold or join wage negotiations, the
workers would be entitled to stop working and the employer
shouldn't fire them for doing so, according to the draft law,
Xinhua reported.
The Regulation is the most comprehensive labor law in China, Liu
Mu, head of the labor law department of the standing committee of
the Guangdong Provincial People's Congress, was cited as
saying.
"It will establish a mechanism so workers can legally voice
demands for pay raises."
-By Owen Fletcher, Dow Jones Newswires; 8610 8400 7702;
owen.fletcher@dowjones.com
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