Japanese affiliates hit hardest by China strikes

TOKYO (AFP) - Japan-affiliated businesses were hit hardest by Chinas recent wave of labour strikes because of a belief among workers that they agree to pay rises most easily, a media survey said Friday. At least 43 foreign-invested companies in China have experienced industrial unrest since mid-May, Japans Asahi Shimbun newspaper said. Of those, 32 were affiliates of Japanese companies, it said. The strikes were kicked off by a May 17 walkout at a Honda Motor subsidiary in Guangdong, then quickly spread to the rest of the province and other regions, the newspaper said. The spread widened especially after June 4, when the Honda side proposed a pay increase of about 24pc, the Asahi said. Japanese affiliates were hardest hit because of a widespread view that Japan-related firms respond to demands for pay increases, especially after the Honda subsidiarys pay rise proposal, the report added. Along with parts factories for automobiles and electronics, strikes hit Japan-affiliated supermarkets and other businesses. Most of the 43 foreign-invested strike-hit companies settled by offering pay rises, the Asahi said. Chinese workers used mobile phones and Internet bulletin boards to quickly share information about the status of labour negotiations at various sites. Some labour groups became better organised and received help from professors and lawyers, the Asahi said. Experts also say Japanese affiliates have generally been slower than those from other countries to recruit local workers to management positions, and have failed to sharpen their labour negotiation skills, according to the Asahi.

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