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Dozens hurt in China labour unrest

China export hub Shenzhen to raise minimum wage
Beijing (AFP) June 9, 2010 - The southern Chinese export hub Shenzhen said Wednesday it will raise its minimum wage by up to 22 percent, joining other cities around the country in hiking salaries following a wave of labour unrest. The minimum wage in the city will rise to 1,100 yuan (161 dollars) a month, an increase of 10 percent in some districts and up to 22 percent in others, an announcement on the city government's website said. Part-time employees will see their hourly wage grow to 9.8 yuan. The increases take effect in July.

State-run Xinhua news agency quoted the head of Shenzhen's human resources bureau saying the city hoped the increase could push companies to upgrade. "The pay rise will increase costs for labour-intensive firms but I hope those companies will take this as an opportunity to speed up technological innovation and industrial upgrading to boost competitiveness," bureau director Wang Min was quoted saying. China has reacted to the recent labour unrest by launching a round of minimum wage hikes across the nation, reflecting concern among top leaders that frustrated workers could trigger wider social turmoil. Shenzhen has been at the heart of the labour concerns following 10 worker suicides at a massive plant in the city run by IT giant Foxconn, which counts heavyweights Apple, Dell, Sony and Panasonic among its clients.

Foxconn has given staff a 70 percent pay rise after mounting accusations that the suicides were due to low pay and high pressure on its workers to produce. The labour strife and wage hikes have raised concerns that the days of cheap goods emanating from China, the "workshop of the world", could be numbered and put a squeeze on corporate profits. Shenzhen was the first of the "special economic zones" established three decades ago to pioneer the economic reforms of former leader Deng Xiaoping, and has grown dramatically since then, powered by cheap factory labour.
by Staff Writers
Beijing (AFP) June 9, 2010
Dozens of striking employees have been hurt in clashes with police in China and Honda was hit by a third work stoppage Wednesday, in the latest labour unrest to disrupt the "workshop of the world".

The fresh labour action, which came after a spate of suicides at Taiwanese high-tech firm Foxconn, again drew attention to what activists say are the difficult conditions and low pay faced by millions of Chinese factory workers.

Honda's production in China has been crippled, with two assembly plants to remain closed indefinitely over the strike at a joint venture making exhaust system parts. A new strike hit a factory making door locks and key sets.

Monday's clashes at a Taiwan-funded rubber factory in eastern China's Jiangsu province marked the first time in recent days that disputes over salaries erupted into violence, with state media saying 50 workers were hurt.

Some 2,000 workers at the KOK Machinery factory in the city of Kunshan outside Shanghai walked off the assembly line, demanding better pay and an improved working environment, the China Daily reported.

The injuries occurred when security forces tried to prevent the workers from taking their strike into the streets, the report said.

Photos of the incident showed police and special security forces massed outside the gates of the facility, preventing workers from exiting.

The paper said 50 workers were injured, five of them seriously.

Officials at the factory refused to comment on the strike when contacted by AFP on Wednesday, but said that the workers had returned to work.

"The police beat us indiscriminately. They kicked and stomped on everybody, no matter whether they were male or female," one female worker told the South China Morning Post, which said at least 30 people were arrested.

Workers were asking for hardship pay to compensate them for working in high temperatures, full workers' insurance, housing subsidies and a change to make work on Saturdays voluntary, according to postings seen in Chinese chatrooms.

Some of those postings were later deleted.

"We have to work in temperatures of 40 to 50 degrees Celsius (104 to 122 degrees Fahrenheit). They refuse to do anything about the heat," one worker told the Hong Kong-based Post.

Geoff Crothall of the Hong Kong-based China Labour Bulletin linked the upsurge in strife to the general economic recovery, saying workers were less inclined to accept low pay, and were facing long hours as orders picked up.

"We are finding in the last few years, particularly since the labour contract law in 2008, workers are more aware of their rights and more willing to stand up for their rights," Crothall told AFP.

"I think labour activism in China comes in waves, but over the last few years there's been an increase in the intensity and frequency of these waves."

Foxconn -- which counts Apple, Sony and Hewlett-Packard among its clients -- has agreed to a 67 percent pay hike for its hundreds of thousands of workers in China after 11 of them committed suicide, 10 in the southern city of Shenzhen.

Its parent company Hon Hai Precision Industry lost more than three billion US dollars in market value in two days this week as investors fretted over the pay increases.

Honda is reeling from a series of work stoppages that have disrupted its annual production of 650,000 vehicles a year in China.

The first strike was resolved when Honda agreed to a 24 percent pay rise.

The second, at a joint venture factory of Honda subsidiary Yutaka Giken and a Taiwanese firm, was ongoing Wednesday, forcing Honda to indefinitely close two of its China assembly plants run by Guangqi Honda.

"There is no certainty as to when we can resume operations," a Honda spokeswoman in Tokyo told AFP.

But a new strike broke out Wednesday at Honda Lock (Guangdong Guli) Co. Ltd in the southern city of Zhongshan.

More than 100 workers there have taken to the streets since Tuesday, a city government spokesman said, according to the official Xinhua news agency.

A Honda spokesman said the walkout had not affected the company's main assembly lines.

Honda shares fell 2.81 percent in Tokyo trade on Wednesday.

The southern export hub of Shenzhen said Wednesday it would raise its minimum wage by up to 22 percent, joining other cities around the country in hiking salaries following the wave of unrest.



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