Wal-Mart Allows Union in China

Under pressure from the Chinese labor federation, Wal-Mart Stores Inc. said Tuesday that it would permit branches of the official Communist Party-controlled union in its Chinese stores if employees requested it.

“Should associates request formation of a union, Wal-Mart China would respect their wishes and honor its obligation under China’s Trade Union Law,” the Bentonville, Ark.-based company said in a statement.

“Currently, there are no unions in Wal-Mart China because associates have not requested that one be formed,” the statement said.

Wal-Mart has some unionized stores overseas where the company bought chains with an organized workforce or where the company was required to sanction trade organizations.

Unions also have made inroads at Canadian Wal-Mart stores.

In Saskatchewan on Tuesday, a provincial appeals court sided with workers in their union battle against the retail giant, ordering Wal-Mart to turn over internal documents that workers said proved a corporate plan to stymie unionization.

And this year, a Quebec Wal-Mart became the company’s first unionized store in North America, prompting workers at two other Wal-Mart stores in the province to file applications to unionize.

The 123-million member All China Federation of Trade Unions last month threatened to sue Wal-Mart and other companies based outside China if they didn’t set up union branches in their China operations.

The federation did not immediately respond to requests for comment.

The unionization drive was the latest attempt by the union -- the sole body permitted to organize workers in China -- to penetrate the most dynamic sector of the economy, shore up its declining membership and boost its lowly political status.

Branches of the Chinese union are usually toothless management-controlled bodies that work mostly to prevent conflict.

Wal-Mart operates 39 stores in China employing 20,000 people.

It sourced $15 billion worth of products in China last year.

The retailer has more than 4,300 outlets in nine countries employing more than 1.3 million people.

Wal-Mart shares fell 3 cents to $55.65 on the New York Stock Exchange.