Tuesday, August 23, 2005

Walmart and Unions in China

Also in Businessweek, the head of China's largest labor union comments on unionizing Walmart in China:

Q: How do you ensure that foreign-invested and private enterprises open their doors to the ACFTU?
A: In reality, many private enterprises are unwilling to allow our union to enter. This is also true of some foreign joint-venture companies. So last year we carried out an inspection to check whether private and foreign enterprises were in compliance with the Trade Union Law [which requires a company to allow the official union to open if 25 or more workers ask for it].

I'll give you one example. Wal-Mart has opened [47] stores in China, and they employ more than 25,000 people. But they have long refused to allow our union into their stores. We have put a lot of effort into trying to get them to allow our union, but Wal-Mart has long found ways to block our efforts. Finally, last year Wal-Mart issued a statement saying that they would allow unions if workers at their stores requested them.

Q: Has the ACFTU established branches in Wal-Mart stores then?
A: As far as I know, no union branches have been opened. I think that is because workers at Wal-Mart are eager to ensure they keep their jobs, which in reality are quite good. So they are not willing to risk their employment at Wal-Mart by asking for a union. Basically they are afraid of losing their jobs.

Actually, some multinationals here in China perhaps misunderstand what it means to allow the ACFTU into their companies. They think that having a union might disrupt the normal carrying out of their China operations. But that isn't true.

Our purpose is to protect workers' rights, but it is also to ensure the enterprises continue with their steady and stable development in China. Also, some local governments are afraid that if they encourage the union to open in their cities, it will frighten away overseas investment.



Online Extra: A New China for Organized Labor

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