Top Biz News

Firms should be compelled to unionize

(Xinhua)
Updated: 2006-07-06 10:51

China's top trade union official and lawmaker Wang Zhaoguo proposed Wednesday an amendment to the Trade Union Law, making it compulsory for foreign-funded companies to unionize.

The move is aimed at countering obstinate refusals by foreign companies, including the world's leading retailer Wal-Mart, to recognize trade unions for employees in China.

Wang, president of the All-China Federation of Trade Unions (ACFTU) and vice-chairman of the Standing Committee of the National People's Congress, said he would "initiate amendments to the Trade Union Law stipulating that companies are obligated to safeguard the establishment of trade unions."

The existing law says that employees may apply for setting up labor unions at their will but fails to specify the duty of companies in assisting such an installation.

Many foreign companies, including the Wal-Mart, has been taking advantage of this stipulation to obstruct the setting up of a union, an ACFTU official said.

Wang admitted that it has been a tough task to unionize in foreign companies, mainly located in economically boomed coastal regions in the East.

"We started to push Wal-Mart to set up union branches two years ago, yet there is not a single one built so far," Wang said, "we will continue to work on this."

As early as 2003, ACFTU has made repeated efforts talking to the retail giant about setting up trade unions, which all turned in vain, as Wal-Mart responded that according to Chinese law, a trade union could only be installed at the free request of employees, and since there have been no requests yet, there is no necessity to establish a union.