Wal-Mart Will Allow Unions in China

Beijing, Under pressure from the Chinese labor federation, Wal-Mart Stores said it would allow workers to set up a trade union in its Chinese stores if employees request it.

"Should associates request formation of a union, Wal-Mart China would respect their wishes and honor its obligations under China’s Trade Union Law," the retailer said in a statement. "Currently, there are no unions in Wal-Mart China because associates have not requested that one be formed."

The 123-million member All China Federation of Trade Unions, a state organ that controls virtually every union in the country, had threatened to sue Wal-Mart and other companies based outside China if they don’t set up union branches in their China operations.