UPDATE 4-Toyota resumes China plant output as strike ends

* Toyota to resume China plant production after disruption

* Honda, Nissan supplier also hit by strikes last week

* Honda workers ready to accept pay deal

(Updates with dispute settlement at Toyota supplier)

By Chang-Ran Kim and James Pomfret

TOKYO/ZHONGSHAN, June 19 (BestGrowthStock) – Toyota Motor Corp
(7203.T: ) avoided a prolonged suspension of production at its
main Chinese car factory when a strike at a plastic parts
supplier was settled on Saturday.

The management offered additional benefits but no extra wage
increase.

The stoppage for most of Friday at Toyota’s joint venture
factory in Tianjin, near Beijing, was the latest in a series of
disruptions across the country caused by labour disputes.

Widening discontent among an estimated 130 million strong
pool of migrant workers, whose toil has powered China’s growth,
threatens to undermine the government’s legitimacy and erode the
nation’s competitiveness as a low-cost factory hub.

Toyota said its Tianjin factory, held jointly with Chinese
carmaker FAW (000800.SZ: ), would resume output on Monday after
the strike-hit Toyota-affiliated parts maker, Toyoda Gosei Co
(7282.T: ), said it reached agreement with workers.

Toyoda Gosei spokesman Shingo Handa said workers agreed to
accept management’s offer of extra allowances for perfect
attendance and summer heat. This was on top of an original 20
percent wage increase following a scheduled, annual pay review.

“The settlement did not include any wage increase on top of
what was originally offered,” he told Reuters by telephone.

Handa said the plant would operate on Sunday — usually a
day off — to make up for the production lost late last week.

Workers at a Honda Motor (7267.T: ) auto parts plant in
southern China also showed up for work on Saturday apparently
ready to accept a new pay deal to resolve a week-long strike.

“We’re tired of all this tension,” said one young woman who
was among hundreds streaming to work at the Honda plant.

“We just want to go back to work and see what happens.”

HONDA HIT

A Honda spokeswoman said yet another strike had hit a
supplier, this time affiliate Nihon Plast Co (7291.T: ) whose
plant in Zhongshan was affected on Thursday.

Production at the factory, which makes plastic parts such as
steering wheels, had resumed on Friday but negotiations between
workers and management are still going on, Honda said.

The Nihon Plast factory also supplies steering wheels and
airbags to Nissan Motor Co (7201.T: ) but a spokesman at Nissan
said there had been no impact on its car production.

China’s leaders, who are obsessed by stability but also say
they can ensure a better life for those at the bottom end of an
expanding rich-poor gap, have muted coverage of the unrest in
state media while expressing public support for workers.

A strike also began late last week at a brewery partly owned
by Danish brewer Carlsberg (CARLb.CO: ) in the southwestern city
of Chongqing but the company said the workers had returned to
work on Friday evening.

Stock Market Advice

(Writing by Melanie Lee; Editing by Nick Macfie and Robert
Woodward)

UPDATE 4-Toyota resumes China plant output as strike ends