Wal-Mart China employees start first union

Wal-Mart execs got some scary news over the weekend. The company's China employees seem to have successfully organized the first employee's union -- and in what could prove its largest international growth market. But, as I'll explain, Wal-Mart's China unions probably pose little threat to the retailer.

Wal-Mart, having been in China since 1996, has told its Chinese employees that they are free to set up unions in stores as long as the unions conform to Chinese law. Why the lackluster response here, when Wal-Mart is vehemently against unions in stores here in the U.S. and even Canada? With all independent trade unions being illegal in China, workers have no choice but to conform to the ACFTU, the All-China Federation of Trade Unions. With the ACFTU being controlled by China's communist party, no wonder Wal-Mart doesn't object.

Wal-Mart now has 60 stores in China. It has pulled out of non-profitable markets like South Korea and Germany (just last week) to concentrate on faster-growing international markets like China and India. Wal-Mart plans to hire over 150,000 more Chinese employees in the next five years.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.