Wal-Mart Signs Collective Contracts With Chinese Employees

According to a press conference held by All China Federation of Trade Unions in Beijing, all the 108 retail outlets of Wal-Mart in China have signed collective contracts with their labor unions.

Zhang Jianguo, director of the contract department of the All China Federation of Trade Unions, said that Wal-Mart's collective contracts regulated such issues as the proportion of wage growth in 2008, the wage standards, and when and in what way the wages should be paid. In addition, the contracts specified that in December of each year, the company will consult with the labor unions about the wage growth rate for the next year. The signing of the collective contracts is the basis for the establishment of a reasonable wage increase and ensures the payment system of Wal-Mart in China.

Zhang said that the collective contracts signed between Wal-Mart and its stores in different areas defined different wage growth rates. For example, the Wal-Mart outlet in Shenyang, capital of Liaoning Province, agreed on a proposal by its trade union to raise employees' salary by an annual rate of 8% in 2008 and 2009, according to the Shenyang trade union.

Apart from the wage increase issues, the collective contracts also included clauses concerning paid vacations, social security terms, payment for overtime, and special provisions for the protection of women workers' interests.