International Centre for Trade Union Rights

How the Chinese Unionised Wal-MartAuthor(s): CHRIS WHITESource: International Union Rights, Vol. 14, No. 1, Focus on the ILO and its Committees(2007), pp. 17-18Published by: International Centre for Trade Union RightsStable URL: http://www.jstor.org/stable/41937600 .

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REPORT □ TRADE UNIONS IN CHINA

How the Chinese Unionised

Wal-Mart

For to opposed

years, central

the

unions. Beijing regional

Local that ACFTUs

Wal-Mart Wal-Mart

reported managers manage-

back to central Beijing that Wal-Mart managers opposed unions. Local Wal-Mart manage-

ment always rebuffed union organisers, repeating "our workers do not want to join. We are reluc- tant to have our Chinese workers in the union". Other multi-national corporations used the Wal- Mart line. The 2003 ACFTU Congress resolved to set up unions in Wal-Mart. In 2004, a National People's Congress (NPC) committee in a nation- wide inspection reported on the enforcement of China's Trade union law. There is a legal right for 25 workers to start a local union committee in an enterprise, and join as part of the ACFTU. In 2005, again the request was made to each regional city union and to local union cadres to talk to local management in Wal-Mart stores and ask them to allow their workers to be in the union. This was done, but again there were rebuffs. In Nanjing the Trade Union Council was rebuffed 28 times. Wal- Mart Head Office in Shenzhen City was unsuc- cessfully targeted. All the local store heads said they were under head office instructions. The ACFTU's usual top-down method was a failure.

A new approach In 2006 the ACFTU strategy turned to the work-

ers, strengthening their resolve to organise from the bottom up, as happens elsewhere where unions face hostile management. But elsewhere, unions had not succeeded in Wal-Mart. Wal-Mart was expanding its 60 chain stores in 30 cities. An article of concern in the news came to the ACFTU's attention, asking 'is Wal-Mart or ACFTU the more powerful'? In July 2006, ACFTU Vice Chairman Xu Deming gathered together trade union heads and organisers for a large meeting that resolved to: ■ mobilise all workers in Wal-Mart; ■ start a public campaign in the mass media; ■ increase investment for unionisation; ■ insist that the legal provision is to be enforced. Management cannot prevent workers from join- ing and hindering is illegal. Business investing in China must abide by Chinese laws. ■ increase investment for those workers who have been punished unfairly or mistreated by management; ■ improve low wages and conditions.

Local union cadres became active handing out leaflets urging joining in front of Wal-Mart exits. Union pamphlets showed benefits of joining with special offers for services. Local cadres met work- ers in restaurants and in their dormitories and homes at night. Reports came in that young women were too scared to join, as management would sack or discriminate against them. Trade union cadres complained to management point- ing out the law allowing workers to join.

Management said their workers did not want to join. Journalists reported the contest, leading to public outcry.

Victory Then on 29 July 2006, the first trade union

committee in the world was formed in Wal-Mart, Jinjiang Store in Quanzhou City. This was in secret, at night to include night and day shifts. Executive members of the union committee were elected, with Ke Yunlong, the young 29 year old meat-packer, as leader. Thumbprints recorded their union oath. Their names were kept secret at the local level so as to not give information to management. With the first 30 joining, the feeling was that it was historic. There was celebration, the singing of the Internationale, and photos and speeches from Ke Yunlong that it was 'the most meaningful achievement of our lives'. Vice Chairman Xu Deming attended.

When Wal-Mart found out about the union committees, they first responded using tactics to intimidate workers not to join. They alleged work- ers had not joined voluntarily. After 29 July, the local and city level unions all received a phone call to increase their organising and to put the gains in the media. Two other stores were unionised the next day. The workers of Wal-Mart Jinhu Shop in Shenzhen were to hold their first meeting on August 4, but moved up the meeting date in spite of management opposition. Thirty- one workers at Wal-Mart's Shop in Nanjing set up a union on 5 August despite management ban- ning union involvement. Union leaders worked seven days and nights in a row giving advice. Legal advisors dispelled the misgivings of those who feared to join the union. The union would defend their rights.

After arguments, local management started to say that if 25 decided to join, then they would recognise the law. Workers said they had a long aspiration to join, but were worried about being punished or dismissed and to raise their demands. On 5 August, Xu Deming urged forward drives. After that, five stores got union commit- tees. Unionising Wal-Mart was a national and international story.

The ACFTU wanted management to accept all stores to be organised. Then, on 1 1 August, the head of Wal-Mart China came to the ACFTU head- quarters. At this official meeting, Wal-Mart had the purpose to have management play a greater role. One point they put up was local management could be the Chair of the union committee. This was rejected. Wal-Mart then said that it would be better if they organised the union committee elections, rather than the union. But workers were insisting that they had to elect the union committee and wanted the union to play the big-

This is my report, based on a conversation with Ms Guo Chen in the All-China Federation of Trade Unions

('ACFTU') Grass- Roots Department organising in non-

public enterprises.

CHRIS WHITE is a Canberra- based labour law researcher.

Page 17 Volume 1 4 Issue 1 2007 INTERNATIONAL union rights

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By October 2006, the ACFTU was in 60 chain stores in 30 cities and had

recruited 6,000 members. Over half of Wal-Mart

workers were unionised by

December 2006. Wal-Mart had lost.

ger role. Candidates should come from all the workers and not be put up by management. They did not want 'an employers union'. Wal-Mart had to back off selecting the candidates, but some middle management levels are apparently eligi- ble.

On 16 August in Shenzhen, ACFTU officials, after much negotiation with Wal-Mart, made a five-point agreement on the procedures for set- ting up trade union committees operational. Workers are to seek guidance from the union, membership is voluntary and open to all, and democratic elections must be carried out for the Chair of trade union committees in each store. A compromise is that the preparatory committees have management, district union officials and workers, but management is to be only 20 per- cent of the committee. By October 2006, the ACFTU was in 60 chain stores in 30 cities and had recruited 6,000 members. Over half of Wal- Mart workers were unionised by December 2006. Wal-Mart had lost.

70 percent target in 2007 The ACFTU admit in most regions Wal-Mart

management is now cooperative. The trade union committees in some stores have negotiated to raise part-time workers' wages to 6 yuan (0.59 euro) per hour, above the minimum of 5.5 yuan. Stores agreed to abolish the probation period for part-time workers and negotiated the right for one day-off each week. Collective agreements are being signed. Wal-Mart now says, 'we are abiding by the law allowing workers to join. Chinese unions are different from unions in the west. The ACFTU has made it clear that its goal is to work with the employers, not promote confrontation.' Critics say the arrangement is still top-down. The ACFTU insists it sticks to the principle of relying on workers to form unions and that it is a depar- ture from past organising, as in their editorial on the ACFTU website (16 August 2006).

President Hu Jintao had on March 14 2006 issued instructions to 'do a better job of building Party organisations and trade unions in foreign- invested enterprises'. On 16 March all ACFTU staff studied this issue. ACFTU prioritised the strategy to unionise the foreign sector, so targeted the biggest company. Others would follow: hence the Wal-Mart strategy. The Party is now putting people into Wal-Mart. Ms Guo Chen said this organising experience is being driven into all for- eign enterprises. The target is 70 percent unionised by the end of 2007. This is happening. These are interesting times.

ACFTU: servicing to organising? The ACFTU has not the same history or politi-

cal context as Western unions. ACFTU 's past prac- tice was principally services, such as housing, health insurance and social security benefits in state-owned enterprises, senior citizen homes, canteens, medical centres, kindergartens and pub- lic baths. When polled as to their perception of ACFTU, 80 percent of union members in private companies put that the union organises cultural events and cinema tickets at the top of their list of answers. Only 8 percent put that the union fights for workers' wages and conditions at the top.

ACFTU officials are employed as civil servants. The ACFTU supports the government, which has strengths, such as consultation in the 2007 Employment Contracts Law. The ACFTU's respon- sibility is economic development, enterprise pro-

duction and efficiency in line with Party policy. Indeed, in many enterprises the union head is also at the top of management and at times the Party leadership. Union finance is guaranteed, as the enterprise is required by the Trade union law to submit two percent of monthly pay roll.

Union participatory rights in management are increasing. Worker councils and assemblies and the union with the 2001 Labour code changes had consultative rights on personnel issues in pri- vate and overseas companies. Although there are rights for the union to conclude collective agree- ments, they are not extensive, only 22 percent in the private sector. Here is the collective bargain- ing challenge.

The morning I met the ACFTU the China Daily (30 January) ran the headline 'labour disputes threaten stability'. The ACFTU warned that the new Employment Contracts amendments should be passed by the National People's Congress (NPC) otherwise the increasing labour disputes and radical actions by millions of workers posed a threat to China's social stability. When these new labour laws are passed the union will have more collective consultation rights. Also, the ACFTU has been pushing for a separate Chapter in the Labour Code on collective bargaining. Tripartite regulations will be first drawn-up gov- erning collective bargaining. This struck me as significant - but it is tripartism the Chinese way The ACFTU is not yet in a collective bargaining role to improve wages and conditions as in the West. But it is a development. The ACFTU has to respond to the increasing demands of its mem- bers and organise collective agreements.

The ACFTU has a campaign responding to the exploitation of millions of migrant rural workers flooding into the coastal export zones cities and who are not registered for benefits. The ACFTU wants this long-standing disadvantage against rural workers removed, so they have the social insurance entitlements as other city citizens. Already the union is linking rural workers from the province they leave to the union in the coastal cities and aims for 10 million new mem- bers by the end of 2007. Organising migrant workers into the union is as important a change as Wal-Mart.

Optimism? Criticism of the ACFTU from the labour move-

ment outside of China and pessimism about its ability to change has been justified. So are the examples of Wal-Mart, 70 percent targets for unionisation of overseas corporations, and the organising migrant workers new markers of change? I am optimistic and I support those like Anita Chan who are revising earlier criticism.

The ACFTU is not a monolith. There are heated policy debates, power plays and different views amongst the factions and the regional and local experiences. The ACFTU is objectively forced to respond to workplace issues better than in the past to maintain legitimacy

Western unions have space to positively engage the ACFTU at the top, with its industry sectors, and at the regional and local union level on a long-term union sustainable strategy. But you can- not tell the Chinese unions what to do. It is their Chinese labour movement.

INTERNATIONAL union rights Page 1 8 Volume 1 4 Issue 1 2007

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