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The world's leading retailer, Wal-Mart, has offered to engage China's top union federation in discussions about the formation of unions among its employees.

The gesture towards rapprochement from Wal-Mart China, came yesterday after five trade unions were set up in its stores in Fujian, Jiangsu and Guangdong provinces in the previous 10 days.

"We have sent a letter to request a talk with the All-China Federation of Trade Unions (ACFTU) to seek possible ways to fulfil this commitment," Dong Yuguo, senior press manager, told China Daily from Wal-Mart's headquarters in Shenzhen, Guandong Province, where three stores set up trade unions this month.

In a written statement, the retailer said it was working with the federation and local union organizations to establish an "effective and harmonious" way to establish grassroots unions among the 30,000 employees in Wal-Mart's 60 China stores.

The ACFTU has been campaigning for two years for the formation of unions at all 60 Wal-Marts in China, alleging that the company had blocked its efforts.

Guo Wencai, the ACFTU's department director of grassroots organization, said his federation is open to discussions.

But at a group interview yesterday, he expressed concern that the "talks are likely to be fruitless" if the barriers on Wal-Mart's side are not brought down.

Despite that, Guo is confident that the federation will bring all Wal-Mart employees under the aegis of a trade union.

"As for a timetable, it's within the near future," he said.

Joe Hatfield, president and CEO of Wal-Mart Asia, said in a statement: "I fully anticipate working collaboratively with leadership from ACFTU and union organizations at all levels to create a model working relationship." Wal-Mart China also said it has been respecting the "wishes and choices" of its employees to help facilitate the nascent unions.

Wal-Mart, based in Bentonville, Arkansas, opened its first store in China in 1996 and has 28,000 Chinese employees. It has few unions elsewhere in its worldwide operations.

The ACFTU hopes setting up trade unions in Chinese Wal-Mart stores will encourage other foreign investors in China to follow suits.

"After succeeding in this difficult case, our efforts at unionizing employees in other companies will become easier," Guo said.

As of last September, only 18,000 foreign companies out of the total of 78,000 in China had set up trade unions. "There is a long way to go in our goal to setting up trade unions wherever there are workers," added Guo.

Guo yesterday also ruled out the rumour that some ACFTU employees joined the trade unions after receiving "gift money" from local trade union federations and the ACFTU.

"That's nonsense. I've never heard of that," said Guo. But he admitted that Wal-Mart union members did accept "material support" from a local trade union federation to facilitate the setting up of their organizations.

He also said the ACFTU has received some local reports that Wal-Mart plans to retaliate against anyone joining the trade unions.

"We are waiting and seeing," said Guo. "If anything happens, we have legal weapons in our hands."

(China Daily August 10, 2006)