Wal-Mart Meets Union Opposition to China Job Cuts

[Omaha Steve]

http://online.wsj.com/article/SB124031218556438767.html?mod=googlenews_wsj

APRIL 22, 2009, 4:09 A.M. ET

By MEI FONG
BEIJING -- Wal-Mart Stores Inc.'s plans to restructure its large Chinese work force hit a stumbling block amid objections from China's state-backed All-China Federation of Trade Unions.

Wal-Mart last week said it would trim a level of management, affecting 2.5%, or 1,400, of its employees. They are being asked to relocate to other store outlets or face pay cuts.

The move angered local union leaders, who asked Wal-Mart to hold off implementing the plan. They also requested meetings among trade union officials and Wal-Mart representatives.

"Wal-Mart should consult with labor unions and the employees who are involved, instead of using such a tough way," said Yang Fengzhi, a union leader in Changchun, the capital of Jilin province in northeastern China.

Wal-Mart spokesman Jonathan Dong said in an email, "We have kept and will continue to keep both the unions and local governments informed of our plans." He added, "The communication with the associates and their understanding of the program has been good, and we are confident of their support."

Wal-Mart's restructuring plans could lead to a tussle between the world's largest retailer, which typically resists efforts to organize its work force in the U.S., and China's labor movement, empowered by stronger labor laws implemented last year. The new laws have led to a flurry of lawsuits by laid-off employees against their former companies.

FULL story at link.