Wal-Mart China Staff Association Might Put The Corporate Business In Danger
A movement called 'Wal-Mart China Staff Association' lead by Zhang might be potentially dangerous for the retail chain business in the region..
The famous multinational retail chain, Walmart, is about to face issues again when it comes to its workforce; however, this time, the issue might be arising in China. The culprit, Zhan Jun, a 44-years-old electrician at the retail chains store situated in Beijing, has initiated a movement called Walmart China Staff Association.
Zhan Jun has a propaganda named Mao-era, which he shared on his blog, Weibo, stating, “The working class must lead everything”. Zhan’s movement is not on a large scale, luckily for Walmart Store Inc. It has not reached the media on major scale nor a national level. The main motive behind this recent development is just for activists to elect their trade union committee. The committee is on large scale and recognized in the west too, so that it has enough power to negotiate.
The ACTFU and others, who share the idea, want to elect their very own leader at Walmart stores, which according to them, has been illegally taken by the head office of the retail chain, as it was persuaded to take unionization into consideration in the year 2006.
The retail chain has been running its business in China since 1996 and is regarded as one of the first international retailers with expansion plans. However, it has only managed to build 411 stores so far, with a workforce of almost 100,000. It has 5,136 stores in the United States.
On the other hand, this is mainly because the retailer has more competition in China such as Sun-Art Retail Group. It was the first to accept unionization due to pressures by the ACFTU in 2006. It even raised wages of its employees in the region in 2008 by almost 8% and even in 2009.
Management appointed representatives, according to Activists, controls Walmart Wholesale’s union committee in China and the company makes the appointments. The grocery store chain did not make any comments on the election of the ACFTU officials, however the company’s director of international corporate affairs, Marilee McInnis, said that the business policy is to “protect the interest of associates, while promoting the sustainable development of the company, provide competitive wages, and have recourses in place to train and develop associates.”
Zhang wrote on a blog saying, “Years of anger Walmart’s suppression and manipulation of the trade unions and exploitation of employees, is now bursting out.”
Walmart stock closed at $60.83 after going red by 0.43% on December 24.