WalMart, breaking down barriers in China

[Randy W]

Across China, Walmart Faces Labor Unrest as Authorities Stand Aside

 

 

 

As the Chinese economy has slowed, strikes and labor protests have broken out across the country, mostly scattered episodes targeting a single factory or business. The government has responded aggressively, detaining activists and increasing censorship to keep unrest from spreading.

But activism against Walmart’s more than 400 stores in China in recent months has followed a different pattern: workers in several cities agitating against the same company, bypassing official unions controlled by the Communist Party and using social media to coordinate their actions — while the authorities largely stand aside.

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The government appears to be keeping a distance because it is worried about provoking a backlash, or about acting on behalf of a prominent American company against Chinese workers at a time when nationalism in China is rising.

 

But by doing little or nothing, it risks encouraging disaffected workers elsewhere, especially at the growing number of national chain businesses with operations across China. Already, workers at Neutrogena stores and China Unicom, a state-owned telecom operator, have used similar tactics, while avoiding serious punishment.

 

When Walmart opened its first store in China in 1996, workers rushed to snap up jobs that paid more than those at Chinese competitors.

 

Now, some employees say, a Walmart job does not pay enough to comfortably support a family, with wages hovering around minimum wage, or about $300 a month. While Walmart has led a high-profile campaign in the United States to raise pay, salaries in China have remained largely stagnant, workers said, barely keeping pace with inflation.