It has been reported today that Wal-Mart has agreed to contract terms with two “labor unions” in China. This speaks volumes about both the cynical labor relations policies of the largest U.S. based retailer and the status of labor rights in the People’s Republic of China.
It was noted in the Financial Times today “[t]he agreements reached with government-approved unions in Shenyang and Quanzhou come less than two years after the official All China Federation of Trade Unions (ACFTU) launched a high-profile campaign to organise workers and mark a new chapter in the development of the China’s labour movement.”
That’s nice, a real struggle for workers rights. So, what did these unions secure for their employees?
Well, the home run here is an 8% increase in wages this year and next. This sounds good at first glance but note two important facts: (1) Wal-Mart employees (non-union employees) in the U.S. see an average 12% increase in their wages; (2) The average wage for workers based in Shenyang, where these Wal-Mart stores are located, average US$102 per month.
I suppose that any improvement in the lives of workers should be applauded and efforts by unions, regardless of their domination by their government, should be encouraged. But, and this is a big “but,” the fact that any union is controlled by its government is abhorrent. As commentators and trade unionists suggest, this is a step in the right direction for unions in China. However, to what extent will the PRC government allow for such continued success by some entity smelling of a “social movement”? Only time will tell.
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