8000 Strike At Nanjing LG Display Plant

Leslie Hook, FT:

By Wednesday evening the dispute, which involved some 8,000 people and forced a partial shutdown of production at LG Display’s factory in Nanjing, appeared to be moving towards resolution after three days of protests.

The reason for the strike: year-end bonuses. Modularizing LCD panels is labor intensive, so LCD manufacturers rushed into China to set up LCD module factories. I gather from this strike cost has been increasing for some time. At some point companies will look to mechanized labor as a solution. Earlier this year Foxconn CEO Terry Gou revealed plans to use one million robots by 2013. But as soon as labor robotization becomes the norm for simple, repetitive tasks the China advantage will start to disappear.