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And when the stock market kept sagging, and once-proud industries like telecommunications, technology and investment banking began laying off workers, demand for luxury goods withered even more.
Before they were scheduled to formally resign at the end of May, Honda fired Mr. Tan and Mr. Xiao on May 22. On June 4, after intense negotiations involving the local government in Foshan and Japanese executives, Honda agreed to a large pay raise, though short of the workers' demand for nearly doubling their salary.
Workers' demand for hourly wages is a necessary step to creating pathways out of poverty and building economic security.
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Moreover, the Chinese government has been actively supporting pro-labor legislation and workers' demands for better wages and rights.
Simultaneously, pressures were brought to bear on employers to resist workers' demands for higher wages to offset the resulting price increases.
More than 250 striking workers at a large industrial laundry, Oceanside Institutional Industries, returned to work yesterday after the company agreed to the workers' demands for union recognition.
Fred Schmidt, property specialist at Morgan Stanley in Tokyo, says workers' demands for a better environment are transforming the way developers put up buildings: ceiling heights are rising, for instance, while currency traders want a Starbucks outlet on their floor.
Even in booming emerging economies core consumer prices are rising much more slowly than they were in 2008.Over time, temporary price pressure can become entrenched, through either consumers' expectations of future inflation or workers' demands for higher wages.
At Honda's supplier factories, a properly functioning trade union would have been able to present workers' demands for higher pay to management at scheduled, peaceful and equal negotiations, and thereby forestall strike action.
Although the Central Bank this week raised one of its interest rates by a full six percentage points, rates remain below inflation, giving Argentines little reason to hold pesos.On the fiscal front the government needs to reduce subsidies and remain unyielding in the face of workers' demands for pay rises.
At BXL Coal Mine, the workers' demands for social insurance premiums were not satisfied after the merger of the mine, and hundreds of workers blocked the mining work for a month.
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