Requirement on increased wages raid Auto JV

　　Compared to FOXCONN, whose wages have been substantially increased after thirteen employee’s suicide by jump down from upstairs, the strikes of workers of Honda China factories are more moderate. However, the problems of Honda are more representative than FOXCONN. The requirement to get pay raised of the front-line staff of Chinese joint ventures/foreign-owned factories is more urgent than in other manufacturing companies.

　　Wide wage gap

　　Presently Sino- foreign JVs are the major part of China auto industry while their supporting parts manufacturers are most wholly foreign owned corporations. However, the wage gap between the front-line Chinese workers and foreign technical staff are extremely wide, which is the exact cause for this time’s strikes in Honda factories.

　　This kind of problem exists in each joint venture/foreign-owned factory. At the early stage of Shanghai Volkswagen, the total wages of dozens German staff were higher that nearly one thousand Chinese workers. Referring to such type of contradiction, a single spark will definitely start a prairie fire.

　　The fact workers of Honda successfully defended their rights have greatly stimulated the staff in other joint-venture factories in China. How to get their wages rose has become the hottest topic between these employees.

　　High-level staff with stronger right protection consciousness

　　Currently most front-line employees in China’s major joint ventures/ foreign-owned factories higher technical personnel with technical secondary education, who has stronger right protection consciousness and open-minded compared to other low-level workers. Besides, they are more concerned about the overall changing situation of China. Strikes in Honda factories especially affected them deeply.

　　With a higher perception, the employees in the joint ventures will more easily make the strikes a spontaneous action, which has been illustrated by the strikes in the Honda factories this time. When employees in FOXCONN can only express their discontent through suicides, the employees in Honda have already learnt to achieve their own ends by strike.

　　Higher manufacturing profits; more space for higher wages

　　Compared to FOXCONN, which belongs to a foundry industry with thin profit margins, the auto industry still maintains relatively high manufacturing profits. Taking the price cuts of dozens thousands Yuan in sales terminal currently as a reference, manufacturing profits of cars with a sales prices of more than 100,000 Yuan will be at least 10,000 Yuan.

　　Besides, since joint ventures need to pay profits to their Chinese and foreign parent company, their profit margins are higher than the self-owned car enterprises. Suppose one Joint venture brand car is charged 100,000 Yuan, one independent model with the same level and allocation of own-brand will be priced at only 700,000 Yuan.

　　The relatively high manufacturing profits make more space for higher wages. Workers with a high knowledge of from the JV factories can clearly recognize this point, which will easily cause a strike campaign.

　　These are the three major reasons why the requirement to raise wages first occurred in auto joint ventures. These employees are in the forefront of the domestic manufacturing industry. With their guidance, the revenues of front-line staff in manufacturing sector will be generally increased within the country, which is also consistent with the economic law that primary level worker should get their pay promoted simultaneously under China’s rapid economic growth.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click: http://auto-morning.blog.sohu.com/154214856.html