Wal-Mart China sees first Communist branch in local outlet

The world's largest retailer, Wal-Mart, has seen the establishment of the first branch of the Communist Party of China (CPC) and the first branch of the Communist Youth League of China (CYLC) in one of its outlets in the northeastern city of Shenyang, capital of Liaoning Province.

A local CPC committee official announced on Thursday that the Party and youth league branches were established in the Shenyang Wal-Mart Department Store on August 12, along with a trade union, giving employees access to CPC membership.

They were the first CPC and CYLC branch set up in the Wal-Mart's 22 China outlets to have established trade unions and the first among all 59 Wal-Mart stores nationwide, said Chen Lie, head of the Organization Department of the Dongda District Committee of the CPC.

The CPC and CYLC branches would not interfere with the business development strategy and internal management of the Wal-Mart outlet, Chen said, without explaining the delay in the announcement of the news.

The branches were grassroots organizations of the CPC and the CYLC. "By organizing CPC and CYLC members together, the branches will encourage members to play an exemplary role in doing a good job and that will be helpful to business development," Chen said.

Wal-Mart headquarters did not oppose the establishment of the CPC and CYLC branches, said a manager at the Shenyang outlet, who only gave his surname as Liu and refused to make further comment.

Wal-Mart chiefs could not be reached for comment.

Wal-Mart had previously refused to allow the establishment of Party and youth league organizations in its outlet.

Some foreign investors worry that the CPC branches could disrupt operations if they are established in Sino-foreign joint ventures.

"They do not need to worry about that," said Zhu Hui, vice president of the Party School of the Shenyang City Committee of the CPC. "The aim of the CPC is to boost economic development, which accords with the purpose of business development of Wal-Mart and other enterprises."

Under the CPC Constitution, all enterprises, including private businesses, are encouraged to set up CPC organizations. It requires members to set a good example and devote themselves to work.

Shenyang Wal-Mart Department Store has two CPC members and 16 CYLC members out of 389 employees, 222 of whom are under the age of 28 and eligible to apply for membership of the CYLC. The CPC Constitution allows Chinese citizens over the age 18 to apply for membership.

Sun Haijun and Guan Ting are the two CPC members working at the Shenyang Wal-Mart outlet, located in the Dadong District of the city.

They said the establishment of the Party branch would prompt them to work hard and play an exemplary role. "It's good for business development," said one.

He Zheng, another employee of the store, said he believed the Party and CYLC branches would help unite employees and encourage them to contribute more to the business development.

With 1.6 million employees in 16 countries and regions, Wal-Mart has a history of banning trade unions in its outlets, for which it has been widely criticized by human rights and labor organizations. It also refused to allow the establishment of CPC and CYLC branches in the past.

With mounting pressure from the All-China Federation of Trade Unions (ACFTU) and the public, Wal-Mart China conceded in 2004 in a statement that "should associates request the formation of a union, Wal-Mart China will respect their wishes and honor its obligations under China's trade union law".

Wal-Mart chiefs have promised to help the ACFTU, China's top trade union authority, establish unions in all its outlets across the country.

Joe Hatfield, president of Wal-Mart Asia, has said he hoped to establish a good relationship with the ACFTU and local branches that would be beneficial to Wal-Mart employees and business development.

"We think it is in line with the Chinese government's efforts to build a harmonious society," Hatfield added.

Wal-Mart has set up 59 outlets in 30 cities since it entered China in 1996. It has more than 23,000 employees in China.

China has seen the establishment of a growing number of CPC branches in foreign-funded enterprises in recent years.

Suzhou city, in the economically-developed Jiangsu Province, has 6,545 foreign-funded enterprises, in which 1,049 CPC branches with 14,041 members have been established.

Established in Tianjin in 1992, Motorola China Electronics Ltd., which ranks second among the top 500 foreign-financed enterprises in China, saw the establishment of a CPC committee in 1997.

Due to their hard work and devotion to the development of the company, 489 CPC members have been named outstanding employees of Motorola China Electronics Ltd. in the past nine years.

Inspired by the CPC's success in fostering economic growth, Manfred Brocke, a German expert who worked in China for several years, applied for CPC membership at least three times.

But as a foreigner, Brocke may not be able to join as the constitution stipulates that only Chinese citizens above 18 are eligible to apply for membership. However, he said, "My belief in the CPC will never change."

Shenyang has set a target to gradually set up trade unions, CPC and CYLC branches in more than 90 percent of the 10,431 foreign-financed enterprises in the city in the coming year.

Shenyang City Committee of the CPC will set up a special committee in the local general federation of trade unions, which will help and guide the establishment of trade unions, CPC and CYLC branches in private businesses.

Source: Xinhua