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Oct 19, 2006

Wal-Mart under pressure in China

Wal-Mart has recently come under pressure in China over the issue of trade’s unionism. After some initial resistance from the multi-national, Wal-Mart eventually gave in to government requests to allow the unionisation of its workforce via the All China Federation of Trade Unions.

Over six thousand Chinese Wal-Mart employees working in the sixty six national stores are now unionised, which has been branded as a victory by Chinese union and government authorities.

However, whether this “victory” really amounts to a genuine ability on the part of workers to organise in defence of their interests is doubtful. Chinese trade unions are notorious for being little more than keepers of industrial peace on behalf of ruling state bodies, fulfilling similar functions as the old Soviet trade unions did during the days of the USSR.

Such state endorsed unions play a valuable role on behalf of the Chinese state in policing the workforce and maintaining industrial discipline, so whether such moves lead to a voice for workers against their employers or simply aid the state in its dealings with foreign investors such as Wal-Mart remains to be seen.