Wal-Mart threatens 10,000 job cuts in China
Wednesday, 22 April 2009.
200 white collar staff protest against layoffs outside the company’s headquarters in Shenzhen
chinaworker.info
On 14 April in Futian District, Shenzhen, nearly 200 Wal-Mart employees assembled around the Wal-Mart (China) headquarters, chanting “Give me back my youth. Respect the rights of workers” and other slogans. The protesters are believed to be mainly mid-level management staff with around 10 years’ service at Wal-Mart. Such employees are usually called “white collar” staff due to their relatively secure jobs and higher pay. Most of them earn around 4,000 yuan ($570) per month.
Wal-Mart (China) Group, plans to sack these senior staff from 17 April. Due to a breakdown of negotiations with management, these workers launched their own ‘wildcat’ protest. After this protest lasting several hours, the ACFTU Shenzhen branch (official ‘puppet’ trade union) became involved in negotiations and achieved a temporary compromise between the workers and Wal-Mart. Wal-Mart delayed the layoffs and agreed to submit a new proposal on relocation and compensation for the workers as soon as possible. On this basis the workers ended their protest.
Wal-Mart is the world’s largest supermarket chain, and has always been a notorious “anti-union” company with a lousy record on employees’ rights. The company entered the Chinese market in 1995 and has seen a big expansion, it currently has 227 stores and more than 70,000 employees in China.
Since the economic crisis, the company announced its retail sales worldwide have fallen by 10%, while even in China, the previous high-speed growth has slowed dramatically. Furthermore, it is in Shenzhen and Guangdong, its earliest and most mature markets, that sales have fallen most markedly.
In order to maintain profits Wal-Mart is planning to adopt a nationwide retrenchment plan in China. Based on its own business report 2009, the average number of employees in Wal-Mart branches will be reduced from 322 in January to 275 in March. Every branch store has already laid off an average of 47 employees, most of whom are ground floor and temporary staff, in departments such as cargo handing, logistics and sales.
Not only Shenzhen staff who stage last week’s protest, but staff at Wal-Mart around the whole country are very concerned about the latest redundancy plan. Some workers said that if outstanding complaints with the layoff proposals are not resolved, they do not rule out further protest action.
chinaworker.info
On 14 April in Futian District, Shenzhen, nearly 200 Wal-Mart employees assembled around the Wal-Mart (China) headquarters, chanting “Give me back my youth. Respect the rights of workers” and other slogans. The protesters are believed to be mainly mid-level management staff with around 10 years’ service at Wal-Mart. Such employees are usually called “white collar” staff due to their relatively secure jobs and higher pay. Most of them earn around 4,000 yuan ($570) per month.
Wal-Mart (China) Group, plans to sack these senior staff from 17 April. Due to a breakdown of negotiations with management, these workers launched their own ‘wildcat’ protest. After this protest lasting several hours, the ACFTU Shenzhen branch (official ‘puppet’ trade union) became involved in negotiations and achieved a temporary compromise between the workers and Wal-Mart. Wal-Mart delayed the layoffs and agreed to submit a new proposal on relocation and compensation for the workers as soon as possible. On this basis the workers ended their protest.
Wal-Mart is the world’s largest supermarket chain, and has always been a notorious “anti-union” company with a lousy record on employees’ rights. The company entered the Chinese market in 1995 and has seen a big expansion, it currently has 227 stores and more than 70,000 employees in China.
Since the economic crisis, the company announced its retail sales worldwide have fallen by 10%, while even in China, the previous high-speed growth has slowed dramatically. Furthermore, it is in Shenzhen and Guangdong, its earliest and most mature markets, that sales have fallen most markedly.
In order to maintain profits Wal-Mart is planning to adopt a nationwide retrenchment plan in China. Based on its own business report 2009, the average number of employees in Wal-Mart branches will be reduced from 322 in January to 275 in March. Every branch store has already laid off an average of 47 employees, most of whom are ground floor and temporary staff, in departments such as cargo handing, logistics and sales.
Not only Shenzhen staff who stage last week’s protest, but staff at Wal-Mart around the whole country are very concerned about the latest redundancy plan. Some workers said that if outstanding complaints with the layoff proposals are not resolved, they do not rule out further protest action.
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