Bloomberg News

LG Display China Strike Ends as Fresh Labor Protest Reported

December 29, 2011

Dec. 29 (Bloomberg) -- LG Display Co. factory workers in the eastern Chinese city of Nanjing returned to work after the company agreed to double year-end bonuses, as a new protest reportedly broke out in a car parts plant in southern China.

More than 2,000 workers of the South Korean electronics company took part in a strike after their bonuses were cut to one-third of last year’s amount, Xinhua News Agency said today, citing Cheng Shijun, an official at the Nanjing Economic and Technological Development Zone, where the factory is located.

A separate protest also started over such payments at an auto parts factory in the southern Chinese city of Guangzhou on Dec. 27, worker rights group China Labor Watch said in an e- mailed statement today.

China is seeking to alleviate social unrest and ordered all levels of governments to help needy people while maintaining social harmony ahead of New Year’s Day and the Chinese New Year after a two-week protest by residents of a southern Chinese village this month. Strikes, demonstrations and other protests in China doubled to at least 180,000 in 2010 from 2006, according to Sun Liping, a sociology professor at Beijing’s Tsinghua University.

At LG Display, the workers were unhappy about their year- end bonuses, equivalent to a monthly salary of 1,400 yuan ($221), Cheng was cited as saying by Xinhua. The report didn’t say what their bonuses have been raised to.

About 8,000 Chinese workers went on strike, Sina.com and QQ.com, a news website run by Tencent Holdings Ltd., reported yesterday. LG Display said in an e-mail that operations have returned to normal as employees returned beginning the night of Dec. 28 after an agreement was reached.

Toyota, Honda

Workers at Guangzhou Aries Auto Parts Corp., wholly owned by Japan’s Ahresty Corp. and whose clients include Honda Motor Co. and Toyota Motor Corp., were unhappy over a reduction in year-end bonuses even as they had been made to work longer hours, China Labor Watch said.

An officer at Guangzhou Aries, who would only give her surname as Wang, declined to comment on whether there was a strike when contacted by phone. Calls to Ahresty, Honda and Toyota weren’t answered and their voicemails said they were closed for holidays.

--Liza Lin, Shunichi Ozasa, with assistance from Cheng Herng Shinn in Tokyo. Editors: Stephanie Wong, Garry Smith

To contact Bloomberg News staff for this story: Liza Lin in Shanghai at llin15@bloomberg.net; Shunichi Ozasa in Tokyo at sozasa@bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net


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