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Wal-mart signs collective contract in Shenzhen

(CRI)
Updated: 2008-07-25 17:27

Representatives of sixteen trade unions of Wal-mart Store Inc in Shenzhen, a city in southern China's Guangdong Province, have signed a collective contract with the company that represents the core interests of about 8,500 employees, Nanfang Daily newspaper reported.

Related readings:  Wal-Mart signs collective labor contract with employees

The contract was signed by the trade union under the leadership of Shenzhen Federation of Trade Unions and senior Wal-Mart executives. The signing ceremony on Thursday afternoon marked a breakthrough in negotiations between Wal-Mart executives and staff members, and the establishment of a collective consultation system.

The contract concerns aspects such as pay, sick leave and vacation days, and insurance benefits. The trade unions and Wal-Mart will negotiate about the overall growth rate of wages next year. In 2008 and 2009, the average growth rate will be nine percent, with an additional percentage point available for promotion and allowances. The minimum wage at Wal-Mart shall be markedly higher than the minimum wage standards announced by the local government.

An official of the Shenzhen Federation of Trade Unions said the collective consultation system in Wal-mart is a model in foreign-funded enterprises in Shenzhen. The municipal and district federation of trade unions will pay more efforts to promote the collective consultation in key enterprises.

Wal-Mart Stores, Inc., one of the world's top five hundred enterprises, has been engaged in collective bargaining since its trade union was established in Shenzhen on August 4, 2006.