Breaking from Tradition: The Unionization of Wal-Mart China

In August 1996, Wal-Mart Stores opened its first Supercenter and Sam’s Club in Shenzhen, China. The entrance signaled Wal-Mart’s interest in China as not only a producer market, but also an emerging consumer market. As of December 2007, Wal-Mart has 90 supercenters, three Sam’s Clubs and holds a 35% share of the Taiwanese Trust-Mart brand.

As Wal-Mart grew, it came under mounting pressure from the All China Federation of Trade Unions (ACFTU) to establish trade unions within its stores. Wal-Mart refused to set up a labor union and in a groundbreaking shift, the ACFTU began a grassroots effort to organize Wal-Mart workers instead of its usual attempts to organize through a top-down movement. The ACFTU’s efforts were successful as Wal-Mart labor unions started to appear in stores throughout China.

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