Wal Mart in trouble with Chinese law for treatment of workers

[Doctor Cynic]

I haven't found anything in English, but this article says there's a controversy over Wal Mart's treatment of its Chinese employees. They don't directly employ people to make stuff, so they have offices in China that deal with procurements. About a week ago, in one department of 1200, about 200 were given letters saying they would be fired on November 30. Those letters did not state any reason why they were being fired.

This apparently put Wal Mart into trouble with Chinese laws that recently took effect, which state that such mass-firings are only allowed for "economic reasons" or if the circumstances change so the employment contract cannot be fulfilled. If the company is facing serious difficulties, management would have to give 30 days notice and report the circumstances to a government department, before firing workers. In July, Wal Mart had said since their purchases from China has falled by 40% in the past year, they had to fire 15% of the procurement department. The fired workers have since started redressing grievances with management, and said they will seek legal action if they aren't satisfied.

There were also complaints Wal Mart made people work 48, 49, or 51 hours a week without paying overtime, but this is a separate issue.
http://news.sina.com.cn/c/2007-11-03/002114223345.shtml


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This is another Chinese article describing how suppliers are fed up with Wal Mart's pricing tactics.

http://news.xinhuanet.com/2007-07/27/content_6438453.htm

Wal Mart is well known for its race-to-the-bottom procurement policies
They used to be welcomed in China when they first set up shop, but more and more companies are starting to resent them
They force Chinese suppliers on a race to the bottom
Many of them depend on Wal Mart to survive, so their profit margins shrink, and they abuse workers
Some have even swallowed losses to satisfy Wal Mart
Workers have been seeing higher and higher pay raises (about time), the RMB has risen in value, and the cost of raw materials has increased, all within the past year.
So, the biggest supplier of socks in China has stopped accepting orders from Wal Mart
Wal Mart is now buying more from Vietnam, India, Pakistan, and Turkey as China is becoming more expensive
Analysts say those countries can make textiles for 10% less than China can, so it's a sign China is evolving out of the Wal-Mart supplying business.
As a result some companies are seeking to improve their brands so they can sell them abroad.

[aquart]

1. When you don't meet Chinese standards...

Wait a minute: "As a result some companies are seeking to improve their brands so they can sell them abroad."

EXCUSE ME? Any crap is good enough for the United States, but Europe is a little pickier?

[flashl]

2. Yes, its true. n/t

[Cassandra]

3. Years ago, Thailand was the source of cheap gold jewelry.

As they got more skilled, they were insulted that their US buyers wanted goods cheaper and crappier than they were willing to make. The production of junky gold jewelry moved to China and will probably move on from there.