Wal-Mart signs pay deals with official Chinese unions

Wal-Mart said it had reached collective bargaining agreements with China's official union in several cities.

SHANGHAI: US retail giant Wal-Mart, criticised for its attitude to organised labour at home, said on Friday it had reached collective bargaining agreements with China's official union in several cities.

The world's largest retailer made its first agreement in Shenyang in the northeastern province of Liaoning on July 14 to increase employees' pay by eight percent in both 2008 and 2009, Wal-Mart spokeswoman Mu Mingming said.

In addition unions in Shenzhen, in southern Guangdong province, and in Quanzhou, in southeastern Fujian province, secured similar pay rises on Wednesday and Thursday respectively, Mu said.

"We always respect local laws. To respect the rights of our employees, we will continue with such discussions on the basis of mutual understanding as we develop the business here," Mu said.

Mu added the retailer was in talks with unions in other Chinese cities, but did not yet have any timetables for agreement.

The collective bargaining agreements come two years after Wal-Mart pledged to allow unions to operate at all outlets in China following intense pressure from the nation's government-run labour organisation.
ADVERTISEMENT

According to China's trade union law, all employees have the right to join the All-China Federation of Trade Unions (ACFTU), the country's only legal trade union which claims some 150 million members and is controlled by the government.

ACFTU has been criticised by labour organisations outside China for being toothless and bowing to the wishes of the Communist Party.

Wal-Mart currently runs more than 100 stores in 53 Chinese cities with more than 40,000 staff.


ADVERTISEMENT
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › News › International › Wal-Mart signs pay deals with official Chinese unions
Text Size:AAA
Success
This article has been saved

*

+