WalMart Workers Unionize in China

WalMart Workers Unionize in China

August 2, 2006

As you can see in this article in The Australian, Wal-Mart’s labor issues are not limited to Chicago. The All-China Federation of Trade Unions has succeeded in unionizing the stores in Fujian province. Wal-Mart buys 1 per cent of China’s entire gross domestic product, operates 59 stores, employs 23,000 people, and plans to open 20 new stores and increase employment to 150,000 over the next 5 years.

Last month Wang Zhaoguo, an influential Chinese leader, proposed legislation to force all foreign employers to unionize their workers. This is worth keeping an eye on as an indicator of Chinese government attitudes toward attracting and retaining foreign capital, the key to sustainable growth.

JR

John Rutledge

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