With the strike at the Honda Autoparts Manufacturing Co in Foshan parts plant only just settled, workers have downed tools at another Foshan parts plant linked to Honda, the Economic Observer reports. The workers are demanding higher wages.

On the morning of June 7, a large group of workers at Foshan Fengfu Autoparts Co. Ltd. gathered on the lawn inside the company premises and refused to continue production. The following day one of the workers told the Economic Observer that the entire workforce is united in demanding a wage increase. According to reports, wages at the factory are currently around 1300 yuan per month.

About 200 workers are currently refusing to resume production. On the afternoon of June 8, the local government sent mediators to the plant, but the workers say that, so far, the company has made no response to their demands, is refusing to meet the workforce and is demanding an immediate return to work.

Fengfu Autoparts is a joint venture between Japanese company Yutaka Gilken and Taiwan company Moonstone Holdings Limited. The company's main products are exhaust pipes, silencers, air filters, oil filters and fuel filters. It appears the company is the sole supplier of exhaust systems and silencers to Honda car assembly plants in Guangzhou.

According to reports, Honda owns 70 percent of Yutaka Gilken.

Earlier, Honda's Beijing spokesperson Takayuki Fujii confirmed that a strike was taking place but said it was unlikely to impact Honda's car assembly plants in the area. However he admitted that if the dispute was not resolved quickly it would lead to a shortage of spare parts.

According to sources, because of Honda's just-in-time production system, its assembly plants only hold around one-and-a-half days' supply of spare parts. The workers at Fengfu have already been on strike for two days.

After a strike broke out at Honda Autoparts Manufacturing Co. on May 27, Honda was forced to halt production at all its car plants on the Chinese mainland.