Honda Motors (NYSE: HMC) is using good old-fashioned management tactics to overcome strikes that have shut some of its plants and related parts operations in China. The Japanese company agreed to improve wages in the locations, but has begun replacing workers with outside labor.
According to The New York Times,
“Factory managers began hiring a steady stream of replacement workers on Sunday, and a significant number of strikers went back to work after increases in wages and benefits, even as many others remained on strike.”
Strike-breaking and the use of “scabs” to replace permanent workers is a time-honored tradition in the US, and Chinese laborers are about to find out that work stoppages often backfire.
Douglas A. McIntyre
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