The Chinese Wal-Mart

Wal-Mart Stores Inc announced it would allow unions to be established in all Chinese outlets. But the government-run labor organization maintains its skepticism in regards to the American megastore.

To pledge continuing cooperation with the Chinese government Wal-Mart stated that

'We intend to collaborate with the All China Federation of Trade Unions ... [this act] reflects our mutual aim to establish grassroots unions within each Wal-Mart store throughout China. Wal-Mart China desires to further strengthen its ties to China and our associates."

Wal-Mart has 60 stores in China and employs more than 31,000 workers. After intense pressure to unionize, 5 union groups have been organized in the last two weeks.

Wal-Mart has said its employees have been free to set up unions if they wish and that it they follow Chinese laws. But we all know what usually follows after a store unionizes--Wal-Mart pulls out. Wal-Marts struggle to convince the Chinese government that they are committed to their word will be a long uphill battle. China has every right to worry about Wal-Mart getting revenge on the stores that unionize, their track record is hideous, and has urged Wal-Mart not to act with retribution.

The sad thing is, no matter who forms or sanctions the unions, in the end, the Chinese workers still get screwed. You must either join a state run union, or be pushed around by Wal-Mart. Why would Wal-Mart allow unions in China but not in the U.S.? The answer is simple, China is a bigger market with bigger growth potential, and the goods are made there.