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Strike ends at Toyota's China-based parts supplier

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Strike ends at Toyota's China-based parts supplier

Associated Press

Tokyo -- A strike at one of Toyota's China-based parts suppliers ended today, allowing production to resume at its nearby auto plant Monday after a one-day stop, the Japanese automaker said.

The strike is among several that have plagued Toyota and Japanese rival Honda Motor Co. in China, which has been shaken by unrest among migrant workers who are becoming increasingly vocal in their demands for a piece of China's growing prosperity.

Workers at a plastic parts factory of Toyota Motor Corp. affiliate Toyoda Gosei Co. in the northeastern city of Tianjin went on strike Thursday, forcing the plant's production line to shut down in the afternoon.

But that ended today, and production was set to resume on Sunday, although that is usually a day off for the workers, said Toyota spokeswoman Mieko Iwasaki. She declined to give terms of the deal, but the strike had been over wages.

The Kyodo news agency, citing officials in China, reported that workers at Toyoda Gosei agreed to an earlier management proposal for a 20 percent wage raise from the previous year, although they had sought a bigger pay increase.

The walkout followed a one-day strike by workers at another Toyoda Gosei unit and Toyota supplier, Tianjin Star Light Rubber and Plastic Co., which ended Wednesday after the company agreed to review the pay for its 800 workers.

Iwasaki said Tianjin FAW Toyota Motor Co., Toyota's auto plant, will be back up Monday as supplies begin to arrive from Toyoda Gosei.

Earlier strikes at several China suppliers of Honda Motor Co. have forced it to suspend car assembly intermittently in the past month due to a lack of parts.

Workers at Honda Lock (Guangdong) ended a strike and went back to their jobs earlier this week after the company agreed to continue with talks on their demands for wage increases.

The spate of recent strikes comes as workers, who put up with slower wage growth during the recent economic slowdown, are demanding higher wages and better conditions now that the economy has rebounded.

It also reflects a broader problem in China, where a widening gap between the country's wealthy cities and the still developing countryside has added to frustrations among the young migrants who make up much of the factory work force. The migrants move to the city in search of a better life, only to find the cost of living prohibitively high.

The increasing agitation among workers poses a problem for Japanese companies, who shifted production to China in the hopes of exploiting lower labor costs and cashing in on a growing consumer market.

From The Detroit News: http://www.detnews.com/article/20100619/AUTO01/6190361/1148/Strike-ends-at-Toyota-s-China-based-parts-supplier#ixzz0rUa6qaEE

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