Striking workers at a factory in China that supplies Honda Motor Co went back to work Thursday after agreeing to a 47 percent pay hike, an employee said. The strike at the Atsumitec Co factory in the southern city of Foshan in Guangdong province near Hong Kong came amid a wave of wage protests that have idled dozens of Chinese and foreign-owned factories.
Atsumitec's 200 employees went back to work Thursday afternoon after accepting a 500 yuan ($74) increase in monthly salaries that start at 1,070 yuan ($158), the employee said by phone from the factory office. He refused to give his name. The strike began July 12 at the factory, which supplies gearshift levels to Honda assembly plants in China. Honda said earlier its production was not affected because it had adequate supplies of components. "This afternoon, all of us were back to work because conditions were negotiated properly," the employee said. The strike was triggered by changes in work rules that would cut overtime pay on which workers rely because their base wages are low, according to Hong Kong news reports.