China's Worker Unrest: Transforming from 'World Factory' to a 'World Market'?


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Case Details:

Case Code: HROB137
Case Length: 29 Pages
Period: 2007-2010
Organization: Honda Auto Parts Manufacturing Co. Ltd. (Honda) Foshan / Foxconn International Holdings Ltd. (Foxconn) / Shenzhen
Pub Date: 2011
Teaching Note: Not Available
Countries: China
Industry: Automotive / Electronics / Manufacturing

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

According to experts, the country had vigorously followed an export-oriented growth model6 that focused on growth at any cost.7 It had created a class of underprivileged migrant laborers or the 'Mingong' and the entire growth in the country seemed to emerge out of their exploitation.8 Consequently, social unrest had been growing in the country,9 going up to unprecedented heights during the summer of 2010 (Refer to Exhibit I on the Centers of Labor unrest in 2010 and to Exhibit II for a timeline of strikes in China). The strikes at Honda Auto Parts Manufacturing Co. Ltd.10 (Honda), Foshan, and the suicides at the Foxconn International Holdings Ltd.11 (Foxconn) plant in Shenzhen drew the attention of the global community.12

Excerpts >>


6] "Rethink Export-led Growth Paradigm, Says UNCTAD," www.twnside.org, September 16, 2010.
7] Howard W. French, "Chinese Success Story Chokes on its Own Growth," www.nytimes.com, December 19, 2006.
8] Pepe Escobar, "The Peasant Tiananmen Time Bomb," www.atimes.com, January 22, 2005.
9] Jim Yardley, "After 30 Years of Reform, Economic Perils on China's Path," www.nytimes.com, December 19, 2008.
10] Honda Auto Parts Manufacturing Co., Ltd. is Honda's fully owned vehicle powertrain components production subsidiary in China. It started its operations at the Nanhai Industrial Park District, Foshan City. Honda Motor Company, Ltd. is a Japanese multinational corporation that manufactures automobiles and motorcycles.
11] Foxconn International Holdings (FIH) is a subsidiary of Hon Hai Precision, which is the world's largest manufacturing services providing company for computer equipment, communication devices, and consumer electronics industries. The firm offers joint design, development, and after-sales services to its clients. The firm was established by Taiwanese industrialist Terry Gou.
12] Tom Mitchell "China: Strike force," www.ft.com, June 10, 2010.

 

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