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Wal-Mart backs off from no union stance
(Xinhua)
Updated: 2004-11-25 22:09

The All-China Federation of Trade Unions (ACFTU) is ready to help Wal-Mart China establish a trade union, an ACFTU official said yesterday, responding to a statement issued by the company on Tuesday.

A file photo shows Wal-Mart CEO Lee Scott speaking at the opening ceremony of a retail research centre in Beijing, China, November 2, 2004. The world's biggest retailer Wal-Mart Stores Inc. expects to have 43 stores open in China by the end of the year and will add 10 or more in the world's most populous country next year, another senior executive said. [Reuters]

In an exclusive interview, the ACFTU official, who declined to be named, told Xinhua that Wal-Mart China has shown a positive change to its long-standing non-union attitude and the ACFTU is planning to help foreign-funded companies, including Wal-Mart, establish trade unions as soon as possible.

Analysts believe that the retail giant reversed its non- union position under pressure from the ACFTU and the public.

China's labour union threatened legal action against foreign enterprises such as Wal-Mart, Dell, Kodak, Samsung for refusing to set up trade unions in their Chinese businesses in October this year.

The global retailer said in the statement faxed to the media that "should associates request the formation of a union, Wal-Mart China would respect their wishes and honour its obligation under China's trade union law."

The statement also pledges to "continue to work closely with our associates and appropriate government authorities to ensure full compliance with China's trade union law."

The ACFTU official told Xinhua that "Wal-Mart no longer holds the international practice of not building up trade union as an excuse, indicating that its attitude toward the issue has changed positively."

The ACFTU is planning to survey employees working in foreign-funded companies within China, including Wal-Mart, to study their working situations and welfare system, said the official.

"If their employees have the intention to set up trade unions, the ACFTU will provide assistance for the early installation of such bodies for the protection of their rights in accordance with the trade union law," the official said.

"And if the foreign-funded companies still deny their workers' right to join the trade unions, the ACFTU will surely pursue litigation against them," he added.

Wal-Mart, the world's largest retailer, has 190,000 Chinese staff in its 37 China outlets throughout 18 Chinese cities. None of the outlets has established a union so far.

According to China's trade union law, all employees have the right to join the ACFTU, and anyone who applies to set up a union should be approved by the company.

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