BEIJING (Reuters) - Wal-Mart Stores Inc., the world's biggest retailer, gave ground to Chinese pressure Tuesday and said it would allow its workers to set up a trade union.þþThe decision by the U.S.-based company, under intense scrutiny worldwide for its labor practices, highlighted the importance of a market where it bought $15 billion worth of goods last year and is aggressively adding stores.þþ``Should associates request formation of a union, Wal-Mart China would respect their wishes and honor its obligations under China's Trade Union Law,'' the firm said in a statement.þþWal-Mart calls its employees associates.þþChina threatened last month to blacklist Wal-Mart and a handful of other foreign firms if they did not set up trade unions at their China units.þþAnalysts have said the union battle may be more about influence of the state than employee rights.þþThe trade federation, which claims 123 million members, is a state organ that controls virtually every union in the country. Independent trade unions are illegal.þþBut the federation's influence has been waning, with increasing numbers of workers heading to multinational firms or being laid off as China reforms its state-owned giants.þþForeign retailers such as Wal-Mart, Germany's Metro AG, France's Carrefour SA and Britain's Tesco Plc. are all developing a presence in China as Beijing relaxes rules governing foreign retail investment.þþWal-Mart said it was in full compliance with China's Trade Union Law, which it said states that establishing a union is a voluntary action of the associates.þþ``Currently there are no unions in Wal-Mart China because associates have not requested that one be formed,'' the statement said. þþ
Source: NY Times
