Toyota to Reopen China Plant as Denso Workers Return

From Bloomberg:

Toyota plans to reopen its plant in Guangzhou, which has been closed since June 22, Hideto Yukawa, a Tokyo-based spokesman for the automaker, said today. Denso Corp., Japan’s biggest auto parts maker, said employees agreed to return to work at a factory in the city that makes components for Toyota.

At least eight strikes in the past month have forced suppliers to Toyota, Honda Motor Co. and Nissan Motor Co. to raise wages in China, increasing the carmakers’ costs in the world’s largest automobile market. Pressure for higher pay is rising as workers demand a greater share of the benefits of economic development, said Bill Russo, a Beijing-based senior adviser at Booz & Co.

The workforce “has not been benefiting or participating in that development through the ability to consume the goods they are producing,” Russo said. “That imbalance has to be corrected.”

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