Wal-Mart Pledges to Allow Unions on all China Stores(Chicom controls Wal-Mart via unions)

Forbes.com ^ | 08/09/06

[TigerLikesRooster]

Wal-Mart Pledges to Allow Unions on all China Stores

BEIJING (XFN-ASIA) - Wal-Mart Stores Inc said it will allow unions to be set up at all its outlets in China, although the nation's government-run labor organization is maintaining a hard line against the US retail giant.

'Our announcement today that we intend to collaborate with the All China Federation of Trade Unions ... reflects our mutual aim to establish grassroots unions within each Wal-Mart store throughout China,' said a company statement.

'Wal-Mart China desires to further strengthen its ties to China and our associates.'

Employees of Wal-Mart have set up five unions over the past two weeks, following two years of intense pressure from the All China Confederation of Trade Unions to allow unions at the organization's stores.

Wal-Mart has 60 stores in China and employs more than 31,000 workers.

The company has said its employees have been free to set up unions if they wish and that it they follow Chinese laws.

Despite its insistence, the confederation, which is run by the ruling Communist Party, has indicated its continued distrust in Wal-Mart.

The confederation issued a statement on the state-run Xinhua news agency warning Wal-Mart not to take 'revenge' against those employees who had set up the unions over the past two weeks.

'The federation ... will take measures to protect these workers if they are revenged by Wal-Mart,' Xinhua quoted Gou Wencai, a senior official with the union body, as saying.

Guo was also quoted on television as saying it intends to set up union branches eventually in all foreign companies in China to protect the rights of workers better in the private sector.

'We have a work target -- the establishment of unions in foreign-invested enterprises has to reach 60 pct by year-end. This is a difficult task but we must try our best,' Guo told China Central Television.

However joining the confederation's unions offers workers no guarantee against exploitation, with the organization often criticized by international labor rights groups for doing very little to protect workers' rights.

China's trade union law outlaws workers from forming independent unions or organizing collective bargaining activities outside the federation.

[TigerLikesRooster]

I hope Wal-Mart's Guanxi would help go through this difficult time.:)

If these unions are not good for protecting worker's well-being, what are they for?

One thing is for sure. If the government orders unions to pull their members out of workplace, they will all walk out, a tremendous leverage to have.

[TigerLikesRooster]

Ping!

[x_plus_one]

There must be a lot of money to make in China or Walmart wouldn't be taking the trouble to placate the chicoms.

[TigerLikesRooster]

Re #3

Or they already made a lot of investment, which can be lost if they pull out.

[hedgetrimmer]

Or they already made a lot of investment, which can be lost if they pull out.

They'll hang in there until they can secure a taxpayer bailout, then we'll be stuck with the bill. They have OPIC and many taxpayer funded programs to protect them from their foolishness.

[TigerLikesRooster]

Re #5

You mean, U.S. tax-payers? Factoring it in, their products are not dirt-cheap.:(

[hedgetrimmer]

Yes, US taxpayers. No their products are NOT cheap, just as illegal alien labor isn't cheap for us taxpayers here in the US. We don't employ 'em but we are paying and paying and paying for them.

We are being manipulated in the most cynical ways imaginable.

[Dr. Marten]

It is ironic that the Chinese govt. hopes to establish unions in all foreign companies operating inside of China, but they don't allow them when it comes to Chinese operated companies.

[1rudeboy]

OPIC is not taxpayer funded.

[hedgetrimmer]

I saidThey have OPIC and many taxpayer funded programs

But, the Overseas Private Investment Corporation (OPIC) was established as an agency of the U.S. government in 1971.

No taxpayer money involved? I very seriously doubt it.

In their own words, operates at no net cost to U.S. taxpayers, clearly tax money is involved.

[1rudeboy]

Not as clear as you suggest, but be my guest.

[sully777]

This is going to be a problem for Wal Mart in the future.

[Alter Kaker]

It is ironic that the Chinese govt. hopes to establish unions in all foreign companies operating inside of China, but they don't allow them when it comes to Chinese operated companies.

This isn't a real union -- it's a government controled "union" that basically just gives the Chinese government a say in the day-to-day operations of WalMart. It won't do anything for employees.

[Dr. Marten]

I know exactly what it is and like I said, it wouldn't be allowed with a State-owned company.

[pageonetoo]

WalMart has only one choice. the alternative is to allow the state to take all the profits for themselves. The stores will be built and supplied... the supple groundwork is already there.

If they don't do as the Chinese wish, IMO, they will lose the whole ball of wax!

[color_tear]

"It is ironic that the Chinese govt. hopes to establish unions in all foreign companies operating inside of China, but they don't allow them when it comes to Chinese operated companies."

This is not true. Took me few days to get confirmation back.
Chinese labor union does exist in big Chinese operated companies.

Union leaders are company's management leaders and CCP leaders.