Abstract

This case study is about the worker unrest at Honda Auto Parts Manufacturing Co., Ltd. Foshan, and the implications of labor unrest such as this for the Chinese economy. It brings out the approach of the workers when faced by a hostile management and a dysfunctional labor union. It shows how workers can use technology as a medium to organize themselves. The strike at Honda Auto Parts Manufacturing Co. Ltd. (Honda) drew global attention. There were increasing wage demands from workers that threatened China’s competitive-ness. The strike brings out the difficulties faced by China as it moves forward in its process of growth. Some experts felt that the country could make the shift from merely exploiting labor in export-oriented industries to a greater reliance on home markets that could be achieved by a higher pay. The strike had serious implications for the global supply chain. Experts had mixed views regarding these unprecedented developments. It was reported that Shenzhen had drafted labor legislation which might set the pace for reforms in the country. However, the role of the state-owned labor union ACFTU and the way the changes would actually be implemented over time will determine the shape of the new China that is taking shape.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues surrounding the particular context of a labor movement
• Examine the role of the labor unions
• Bring out the factors that lead workers to organize themselves. Understand the critical role of unions in securing employee wellbeing
• Understand the need to have good faith in the relations between employees, employers, and the union
• Understand the role of grievance handling in a union

Keywords

Labor Unrest, Labor Union activism, Strikes, Dysfunctional Labor Union, Emergence of Leadership in a Union, Collective Bargaining, Negotiation, Lewisian Turning Point for economy, Labor Legislation, Grievance handling, Difficulties in Economic Growth in China, Internship programs, Impact of strikes on the global supply chain, Taylorism, Competitiveness of Chinese Economy