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China Union and Wal - Mart Talks in Limbo

  • 08-09-2006
BEIJING (Reuters) - Sparring between China's official trade union and Wal-Mart Stores Inc. (WMT.N) intensified on Wednesday, with the union warning the world's largest retailer not to act against members while the company called for talks.þþGuo Wencai, an official from the All China Federation of Trade Unions, said earlier that the two sides would meet on Wednesday to discuss the federation's campaign to spread official unions into Wal-Mart that began two weeks ago.þþBut a deputy president of Wal-Mart China, Li Chengjie, later told the official Xinhua news agency the company was waiting for a reply to its request for talks away from news media. Guo had said media would be present.þþGuo warned Wal-Mart ``not to take revengeful measures'' against workers who join unions, Xinhua reported later in the day.þþ``The federation, led by the Communist Party of China and backed by the government, will take measures to protect these workers if Wal-Mart takes revenge against them,'' Xinhua cited Guo as saying.þþThe report made no mention of any such action by the company.þþWal-Mart resists unions in any of its operations, while China is determined to introduce trade unions in all local Wal-Mart stores, Guo said last week.þþTwo weeks ago, China's official labor organization established a union at a Wal-Mart store in eastern China's Fujian province.þþSince then, four other unions have formed at other Chinese Wal-Mart stores, according to Xinhua, which did not specify their locations. One was established in Shenzhen in far southern China, and another in Nanjing, capital of eastern China's Jiangsu province, the federation said on its Web site (www.acftu.org).þþThe federation told Wal-Mart not to interfere in the 31-member-strong Nanjing union.þþ``If Wal-Mart union members are subjected to unfair treatment at work, unions at the national, provincial, city and district level will strive all out to protect employees' legitimate rights,'' said the announcement.þþIn the past, Wal-Mart has said it listens to the needs of its Chinese workers and does not need the official trade union to step in. In 2004, Wal-Mart China gave some ground, issuing a statement that:þþ``Should associates request the formation of a union, Wal-Mart China will respect their wishes and honor its obligations under China's trade union law,'' Xinhua reported on Wednesday.þþIn a separate report on state television, Guo said unionization would not harm Wal-Mart's development in China. China aimed to establish unions in 60 percent of foreign companies operating in the country by year-end, he added.þþOfficial Chinese unions are largely conduits for official policy and rarely encourage workers to strike. The government opposes labor groups outside its control.þþ

Source: NY Times