One year later, high-profile South China Sea, Honda Auto Parts Co., Ltd. (hereinafter referred to as "the South China Sea Honda") salary increase again this year. June 25, Guangdong A Good-cum-party working to build South China Sea, Honda revealed the official spot for collective wage negotiations, the South China Sea for the Honda factory line workers to increase 611 yuan monthly wage income, than the original 1921 yuan increased by 32%.

    In fact, Honda is not only the South China Sea, salary has become the automotive industry, automotive suppliers in particular, a common trend. This and the growing manufacturing sector pay trend is consistent.

    However, the upstream supplier staff salaries rose, along with the inevitable cost pressures continue to be conducted, which will greatly squeeze OEMs profit margins. However, the car companies to master the industry the right to speak, and this year's downturn in the automotive industry, competitive situation, the pressure is difficult to transfer this cost to the vehicle body corporate.

    Supporting upstream business for the automotive industry, especially the many labor-intensive parts and components suppliers, salaries of the face of this rising, and rising expectations of future circumstances, only to speed up industrial restructuring and upgrading, to reduce the labor cost advantage of habitual dependency path.

    Salary increase as the trend line

    "In the South China Sea, the Honda incident, in April this year we had a general wage adjustment." One automotive suppliers, "First Financial Daily" said that their entire system of wages was general tone, amplitude was significantly higher than in the past.

    According to its introduction, in the past year will be based on performance and price of the basic wage adjustment, but this time the salary, especially the adjustment of labor workers is relatively large. Service workers in the past, salary increase rate is generally about 10%, this time reaching 20%. The management of the salary increase rate lower than the service workers, about 10%.

    According to the June 25 release of the Honda plant in the South China Sea agreement, front-line workers income increased 611 yuan monthly wage, than the original 1921 yuan increased by 32%; increased subsidies for projects and technical positions; for more than three years seniority starting point for basic wage of workers the new adjustment.

    Jun is a little under the 2011 policy issued by the White Paper on China salary, salary survey shows that in 2011 the automotive industry average growth rate of 12.88% salary budget.

    Jun policy is a little commercial data center manager, told reporters at the legislature, including the automotive industry, including manufacturing, blue-collar white-collar salaries rose slightly. Blue-collar wages is a common phenomenon, one blue-collar workers their salaries low, and minimum wage standards are to rise, so wages have to rise up the second is passive, does not rise, then hire workers. Pearl River Delta manufacturing frequent shortage of workers actually forcing enterprises to accelerate the pace of pay increases.

    In this month, the quality of deep crisis in Kumho Tire Changchun plant that is due to low wages, while the outbreak of the work stoppages to force them to face front-line workers pay.

    Transformation on the agenda

    Prior to an industry source told reporters that the upstream suppliers of the world except for a few giant companies, the vast majority of suppliers is not large scale, but also scattered, and largely based on labor-intensive.

    Even some of the strategies of transnational auto companies supporting vendors, also will take advantage of China's labor cost advantage, production is often the technology is relatively mature product, a number of high-tech components are often second and third class by supporting overseas supplies.

    Thus, under the impact of rising salaries, corporate cost pressures will continue to increase, which will further erode their profit margins.