Delphi says striking China employees return to work

(Bloomberg) -- Delphi Automotive Plc, the auto-parts supplier to General Motors Co. and Volkswagen AG, said striking employees who protested the company's plan to move a factory to another site in southern China have returned to work.

"Regarding the labor relation issue in Guangzhou site, Delphi is working on a plan to relocate the Guangzhou plant to another location in the Guangzhou area due to business needs," the company said in a statement. "Employees expressed concerns about the relocation plan, which resulted in a labor relations issue. This issue has since been resolved, and employees have returned to work."

Labor strife has been on the rise in China as slower growth crimps profits and rising costs prompts more companies to move production to lower-cost countries.

Worker protests and demonstrations doubled last year, to 2,774, with December's total of more than 400 such incidents setting a monthly record.

Delphi has been operating in China since 1993. It operates three technical centers and more than 20 manufacturing sites and 26,800 employees in the country, according to its website.

The company said in the statement that it's committed to operating in full compliance with local regulations, including labor laws.


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