Wal-Mart’s Deal with ACFTU

Wal-Mart strikes deal with ACFTU [Shanghaiist]

Dan Harris of China Law Blog brings us an interesting take on the new pay deal Wal-Mart struck on Friday with the All-China Federation of Trade Unions (ACFTU) in Quanzhou, Shenyang, and Shenzhen.
As reported by Forbes, the U.S. retailer operates more than 100 of its namesake stores throughout China and employs 48,589 people. Its new agreement with its employees in Shenyang calls for an 8% pay increase in both 2008 and 2009. Harris remarks that a pay increase of the same amount next year sounds strange, since there’s no telling what inflation will be a year from now: “Is this an admission by Wal-Mart that it wasn’t paying enough?” he asks.
The deal further marks Wal-Mart as “something of a poster child” for the Chinese government’s drive to get all foreign-owned enterprises to recognize the ACFTU, Forbes writes, since it comes two years after Wal-Mart allowed the union to organize at its local outlets. “What happened to Wal-Mart is no surprise,” Harris adds. He continues:

It is just another step in China’s efforts to move away from being a destination for foreign companies seeking super low paid workers. Just as with so much else in China, we are seeing foreign companies getting out in front in terms of going along with what China wants to do with its economy. Domestic companies are and will continue to follow in terms of having to deal with unionized and higher paid employees… anybody who still thinks China will do anything for foreign investment is living in the past. Times have changed and China is getting more and more selective in terms of the foreign (and even domestic) companies it wants.

Posted by Stephanie Lee on Wednesday, July 30 | 0 comments | Permalink

Asda Targets Gamers with Newly Launched Magazine

ASDA targets gaming market with customer mag [Brand Republic (U.K.)]

Asda will target gamers with the launch of a new dedicated magazine boasting a circulation of over 2m.
The quarterly magazine will be called the Asda Games Magazine and will be a free reviews-based publication aimed at building on Asda’s position as the second largest games retailer in the UK behind Sainsbury’s.

The magazine, which is aimed at the family market rather than experienced gamers, will have the largest circulation of any games magazine publication in the UK, and its launch is part of a sales growth plan over the next three years with family gaming a key area.

The retailer said that the magazine is a key innovation in supporting this growth by offering uniquely targeted information and advice to the core Asda mums market.
The first issue is available in the August Asda Magazine as an insert and the magazine is also part of a wider Asda Games First initiative, which includes new ranges in-store, new fixtures and more space dedicated to games.

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Posted by Stephanie Lee on Wednesday, July 30 | 0 comments | Permalink

The Wal-Mart Effect, 2.0

I realize that we are Wal-Mart Watch, not Loblaws Watch- however, there was no way I could pass up the chance to talk about this story. The London Free Press reports today that Canadian retailer, Loblaws, is cutting wages and ~~change the name of~~ “rebranding” its stores in London, Canada so that it can compete with discount retailers like Wal-Mart. This will also allow them to bypass their union contract with UFCW.

If anyone ever questioned Wal-Mart’s global impact and the strength of their mere existence, this situation should lay those concerns to rest. Wal-Mart’s expansion into the Canadian grocery market has led to Loblaws demise and pathetic attempts to compete at the expense of its workers. It’s interesting to note that Loblaws, while trying to battle the behemoth Wal-Mart, is taking a page right out of their handbook of putting profits before people. It’s good to see that Wal-Mart brings out the fighter in everyone- and the claws. What’s next Loblaws? Are you going to start discriminating against your women employees and denying adequate health care to your staff? Clearly, that is the path to success in the global retail environment.

Loblaws rebrands and cuts wages

London’s three remaining Loblaws stores will undergo major changes that include new names and lower wages for workers.

The company is slashing wages and hours and rebranding its London stores as it struggles to compete with discount food stores, a union official says.

The Loblaws store on Southdale Road is under renovation to become a No Frills. The Wonderland Market at Wonderland Road South and Southdale Road and the Richmond Market at Richmond Street North and Fanshawe Park Road will be renamed in the fall.

Loblaw can cut wages under a new store banner, said Tony Soares, secretary-treasurer of Local 1000A of the United Food and Commercial Workers, the union representing store workers.

“This is all about wage reductions. They cannot compete with the discount grocery store competition and they want to lower wages so they can lower prices to compete with the likes of Wal-Mart,” Soares said.

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Posted by Vasudha Desikan on Wednesday, July 30 | 4 comments | Permalink

Wal-Mart’s Competitor to Set Up Integrated Purchase Center for Asia

Tesco Set Up Purchase Center In Shanghai [China Retail News]