The two-week strike at an engine and transmission factory forced Honda to shut down four Chinese assembly plants for lack of parts. It highlighted tensions between workers and foreign companies that look to China as a source of cheap labor and a fast-growing market amid weak demand elsewhere.
"Poor communication led to a great deal of discontent and eventually developed into a labor dispute. Our company will reflect deeply on this and strengthen communication with employees and build mutual trust," Beijing-based Honda Motor (China) Investment Co. Ltd. said in a statement.
"All the factories are back to normal," said Yasuko Matsuura, a spokeswoman for Honda in Tokyo.
She said the two sides agreed to a 24 percent increase in wages, but would not talk about other aspects of the deal.
Calls to the plants rang unanswered Saturday.
Earlier in the week, employees at the parts plant agreed to return to work on Friday after a deal was reached, but some were dissatisfied and threatened to walk out again to press for more money.
Honda spokesman David Iida at the company's office in Torrance, California, said Friday that all workers have agreed to a new offer and the company expects no further work disruptions.
"Now everyone's on board and everyone's working," he said.
Employees at the factory in Foshan, near Hong Kong, agreed to a pay raise of 366 yuan ($53.60) per month for each full-time worker, which would increase the monthly pay for a new employee to 1,910 yuan ($280).
Some employees still were demanding an 800 yuan ($117) raise, though all agreed to go back to work.