FACTBOX-China labour strike developments, July 21

[Omaha Steve]

http://www.reuters.com/article/idUSTOE66K07B20100721

July 21 | Wed Jul 21, 2010 6:38am EDT

July 21 (Reuters) - China's workers are increasingly voicing their discontent on labour conditions and pay, threatening to undermine the government's legitimacy and erode the nation's competitiveness as a low-cost factory hub.

Following are recent developments -- 1000 GMT on Wednesday (* new or updated items):

* Japanese electronics maker Omron (6645.OS) confirmed that workers at its factory in southern China went on strike Wednesday for higher pay. The workers are asking for a raise of at least 40 percent from the company, which produces mainly switches and ignition keys for Honda Motor (7267.T), Ford (F.N), BMW (BMWG.DE) and other car makers.

* Honda Motor Co (7267.T) said workers at a Chinese factory of Atsumitec Co have been on strike since July 12, with no resolution reached as of Wednesday. A compromise looked likely, however, with management agreeing in principle to a 500 yuan per month raise demanded by workers. The factory in Foshan, Guangdong province, supplies Honda's local plants with shift levers.

- Honda's export-only factory in the southern Chinese city of Guangzhou resumed normal operations on July 9 after the company reached a compromise with workers. Production at the plant was partially halted on Wednesday and Thursday after a few dozen of the plant's 1,000 employees, seeking higher wages and improved working conditions, refused to return to work. A Honda spokesman declined to disclose the terms of the compromise.

- Workers at a factory owned by electronic components maker Mitsumi Electric (6767.T), in the northern port city of Tianjin, entered their third day of strikes on July 1. There are 3,000 employees at the plant. One told the official Xinhua agency he earned only 1,500 yuan ($220) a month after working regular overtime and Saturdays.

- Industrial conglomerate Ingersoll-Rand Plc (IR.N) said a three-day work stoppage involving workers at a Zhongshan factory in southern China had ended. The plant, which makes commercial air conditioning systems for Trane -- an air-conditioning systems maker that Ingersoll-Rand acquired in 2008 -- returned to production as of Saturday, June 26, the firm said.

- Striking workers at a Denso (Guangzhou Nansha) Co Ltd factory said they had reached agreement with management on June 25 after Denso promised a pay rise of 800-900 yuan per month.

Workers had returned to full production earlier on expectations they would reach an agreement.

FULL story at link.