Gridlock News

Chinese Wal-Mart employees have succeeded in establishing a labor union in the 2nd Wal-Mart in China in less than a month.  American employees have attempted and failed to establish unions in Wal-Mart stores across the US, but Chinese employees have succeeded. 

Chinese employees have a big friend on their side, the Chinese Government.  The Chinese government is very much in favor of Wal-Mart employees organizing within its borders (but not abroad) as this will help the Chinese government maintain control of a growing working class of people throughout China that have left the public Government sector for jobs in the private sector which includes taking jobs with Wal-Mart.

Wal-Mart is very accepting of the Chinese governments wishes to have its employees organize.  Wal-Mart employees aproximately 30,000 employees within China.

Unions in the United Sates have experienced waining interest from workers across the country.  There has been a bit of a quagmire relating to the decline in power and effectiveness of unions and their decreasing ability to  serve their constituents in the US successfully and attract more members or even maintain the members they have.  Unions established in part to improve benefits for employees in the early industrialization of the United States and other nations.  China appears to be using labor unions for a purpose that was always somewhat hidden in American politics.  Their purpose is to maintain control over their citizens through labor unions especially where their citizens work for foreign companies.

The focus of the Chinese government appears to be on the service sector of their economy such as retail employees working for Wal-Mart, which stands in stark contrast to the sector that supports manufacturing and light industry, an area of Chinese labor that has been harshly criticized for poor working conditions, long hours, and sweat shop like conditions.  China has not dared to tamper with its manufacturing base as that could raise prices of nations around the world importing Chinese goods, however, where the goods are being sold to its own people through retailers in mainland China they don't hesitate to push for unions.

It remains to be seen whether this unionization push might prove to be a trend that takes off amongst the Chinese people, who might see their fellow citizens in the service sector benefiting from unionization and demand similar opportunities in manufacturing.  This could become a dragon that China may have difficulty controlling.  It might appease a few citizens now, but could prove to be the tipping point that starts the Chinese workers demands for higher wages, better conditions and ultimately could spoil China's cheap labor advantage around the world.