Brother Industries Ltd Strike in Xi'an

10:29 Jun 3 2010 xian china

From Reuters:

Japan's Brother Industries Ltd (6448.T) said it has restarted production at two industrial sewing machine factories in China on Thursday after a strike had forced it to halt output for about one week.

About 900 workers at the two plants in Xian launched the strike on June 3 seeking better pay and improved working conditions, halting production through Wednesday, Brother spokeswoman Mika Oshima said.

The plants restarted production on Thursday morning but a representative for the workers is still in negotiations with management on pay and conditions, Oshima said.

Brother gets the bulk of its sales from printers and other office equipment. Industrial sewing machines accounted for about 4 percent of its revenues in the past business year.

Honda Motor Co's (7267.T) output in China has been hampered by a series of strikes at its suppliers, prompting concerns that unrest among workers in the world's manufacturing hub is spreading. [ID:nTOE65801O]

Shares in Brother closed up 0.3 percent at 995 yen, underperforming a 1.1 percent rise in the benchmark Nikkei average .N225. (Reporting by Nathan Layne; Editing by Hugh Lawson)
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