Date
15 December 2017
A Walmart signage on a Chinese outlet is reflected in a mirror. A landmark lawsuit against the US retailer galvanized labor groups across the country. Photo: Bloomberg
A Walmart signage on a Chinese outlet is reflected in a mirror. A landmark lawsuit against the US retailer galvanized labor groups across the country. Photo: Bloomberg

Walmart wins China landmark labor lawsuit

United States retail giant Walmart has won a landmark lawsuit in China over compensation after it closed a provincial outlet as part of restructuring.

An arbitration panel dismissed the complaint by a chapter of the country’s official trade union, ending a three-month dispute that had galvanized labor activists across China, the Financial Times reported Thursday.

It threw out union demands for additional compensation after the world’s largest retailer shut down its store in Changde, Hunan province, in March.

The Changde outlet employed 130 workers and was one of about 20 Walmart stores earmarked for closure in a larger reorganisation of the retailer’s China operations. 

Walmart also plans to open 110 new stores and hire more than 19,000 workers in the country over three years, the report said.

Sixty-nine of the Changde workers rejected Walmart’s original settlement offer of a month’s pay for every year served plus an additional month’s salary.

The retailer later offered the holdouts an extra 3,000 yuan (US$480) each to help defray their legal costs.

Most rejected the compromise, leading to a two-day hearing in late May.

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