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Wal-Mart strikes deal with ACFTU

2345587550_9775bbb99a_o%282%29.jpgDan Harris of China Law Blog brings us an interesting take on the new pay deal Wal-Mart struck on Friday with the All-China Federation of Trade Unions (ACFTU) in Quanzhou, Shenyang, and Shenzhen. As reported by Forbes, the U.S. retailer operates more than 100 of its namesake stores throughout China and employs 48,589 people. Its new agreement with its employees in Shenyang calls for an 8% pay increase in both 2008 and 2009. Harris remarks that a pay increase of the same amount next year sounds strange, since there's no telling what inflation will be a year from now: "Is this an admission by Wal-Mart that it wasn't paying enough?" he asks. The deal further marks Wal-Mart as "something of a poster child" for the Chinese government's drive to get all foreign-owned enterprises to recognize the ACFTU, Forbes writes, since it comes two years after Wal-Mart allowed the union to organize at its local outlets. "What happened to Wal-Mart is no surprise," Harris adds. He continues:

It is just another step in China's efforts to move away from being a destination for foreign companies seeking super low paid workers. Just as with so much else in China, we are seeing foreign companies getting out in front in terms of going along with what China wants to do with its economy. Domestic companies are and will continue to follow in terms of having to deal with unionized and higher paid employees... anybody who still thinks China will do anything for foreign investment is living in the past. Times have changed and China is getting more and more selective in terms of the foreign (and even domestic) companies it wants.

Photo by umm.

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Comments [rss]

  • RUSHOUR1

    JEFE,



    To be powerful, creative, aggressive and witty in argument all at the same time have something to do with age. Boy, you still have a long way to go, lol!

  • EL JEFE

    I'm only against you in that I would like to understand what the heck you are talking about, lol! You are the worst martyr ever.

  • RUSHOUR1

    to EL JEFE,

    Look around and count how many on-line mobsters against me, alone, you'll know who is a fool as insecure as a typical American whose boss will come to Beijing with 600 very secure bodyguards. You know what? Your westerners are simply narrow-minded and insecured small men, who cannot even stand a poor boy getting richer, lol!

    But I'll never blame your fragile nerves, considering the very two front teeth plucked in NYC in that bright day!

  • EL JEFE

    Eastman, do you think it is possible that any foreigners are as sensitive as you are when it comes to discussing their countries? I don't, and your unwavering stream of nonsense results in you looking no better than an insecure fool.

  • RUSHOUR1

    To I or T



    As you still remember a story told by your mom, I tell you one I read from a book by myself:

    ---Bernard Shaw encounters a nut on a very narrow bridge.

    The nuts say to him" I dont give way to an idiot!"

    Shaw steps aside and says:" But I do".

    Enjoy your Yanghunhun life in Shanghai, bye!

  • T

    "My momma once told me, don't argue with fools, because people at a distance can't tell who is who"



    While I respect Jay-Z's stance on this, for some reason sick compulsion requires that I at least respond.



    Were you born this obtuse, or did you have to take a special course? Why does your English ability change from day to day, from post to post? Is your software that buggy?



    Let me explain it VERY SLOWLY. Ask someone else to explain it to you if you can't understand.



    WHAT

    WAL-MART

    DOES

    AS

    A

    CORPORATION

    HAS

    ZERO

    REFLECTION

    ON

    GOVERNMENT



    In any case, Wal-Mart is among the very worst examples of corporate governance in the US - poor employee healthcare, crap products, squeezing local businesses. Go ahead and criticize their US operations. I'll join you.

  • RUSHOUR1

    Come one I or T, doenst your Demoncrazy you blew up to China each day garantee a basis of human right? Nooooo union! No wonder I see so many beggars in NYC centre park delousing under demon Crazy sun shining brighter than the one over China, lol!



    And Miss. nanheyangrouchuan, go pick up a batman at department of Walmart, the cheapest mart you can afford. Its sale time!

  • nanheyangrouchuan

    Too bad the ACFTU doesn't come to bat for Chinese workers in Chinese companies like they did against wal mart.

  • T

    I'm going to say this very slowly so you can understand it:



    Wal-Mart is not the government of the United States. What they do as a corporation has ZERO reflection on democracy.

  • RUSHOUR1

    To El Jefe

    --"Not really a union"?

    Yes you are absolutely right, for the first time. But you are too dense to know "Not really a union" is still better than 'No Union" in USA.

    What a demoncrazy country, No Union! lol!

  • booggerg

    Even with the Chinese labor union and the recent salary increase, how is the wage of walmart "associates" in China compared to in the US? Adjusted for cost of living of course...

  • EL JEFE

    Not really a union, but hey, eastman is happy

  • RUSHOUR1

    To yu888,



    Real happy that your arsh felt the heat, hehe!

  • arrival

    I just don't believe it ! What a world ! Thought trade unions are a no-no in China ! Only if they knew what has been happening in UK for so many years. But I'm glad about this ... I mean this Wal-Mart deal.

  • yu888

    "It is just another step in China's efforts to move away from being a destination for foreign companies seeking super low paid workers."



    Now so long as the efficiency of these worker was as high as Eastman's annoyance of others, they'd make alot more money, not just 8% raises annually.

  • RUSHOUR1

    I am very glad to know China is the only country where Walmat has allowed a trade union while their American colleagues even cannot enjoy this freedom, lol!

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