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Negotiation Skills: "I Talk About Salary With WAL-MART"

2008/8/14 15:44:00 42073

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After a deep breath, Li Yixin began his elaborate opening speech.

"Everyone says we are negotiating, but I think it's better to say" negotiation "because everyone's purpose is the same for the overall interests of the company.

At 3 p.m. on July 17th, Li Yixin sat at the negotiating table for the first time at WAL-MART China headquarters in Shenzhen agricultural and forestry road.

This is a conference room called Laozhuang, which is on the 9 floor.

Li Yixin is strange to this place.

As a front-line employee working in the electrical Department of Dafen Village, Buji, Shenzhen, WAL-MART did not have the chance to appear at headquarters.

The exception is because of his other identity, WAL-MART Dafen Village trade union chairman.

There are 10 people sitting on each side of the conference table.

On the one hand were representatives from the trade unions of WAL-MART's stores in Shenzhen, with Li Yixin as the chief representative; the other 10 on behalf of WAL-MART's executive side, led by Yan Ji min, senior director of human resources at WAL-MART China headquarters.

A week after this consultation, in July 24th, Li Yixin signed on behalf of WAL-MART over 8000 employees in Shenzhen on a collective contract concluded with the company.

According to the contract, the total wages of these employees will increase at a rate of 9% per year in the next two years.

"WAL-MART is a commanding height."

Zhang Youquan, Minister of the legal department of Shenzhen Federation of trade unions, said that since then, the Federation of trade unions has been more confident in implementing the wage collective bargaining system in the world's top 500 enterprises in Shenzhen.

In August 1st, the Shenzhen municipal government promulgated the measures for the implementation of the trade union law of the People's Republic of China general trade union in Shenzhen. The first time the system of collective wage consultation was incorporated into local laws and regulations.

WAL-MART is famous overseas for its passive treatment of trade unions.

But two years ago, the all China Federation of trade unions opened the gap from WAL-MART and quickly set up grass-roots trade unions in foreign-funded enterprises throughout the country.

Today, we take WAL-MART as the "commanding point" and promote the collective wage consultation system across the country.

"WAL-MART always respects the laws of the host country.

China's headquarters will support and urge all branches in China to sign collective contracts in the next two months. "

In August 5th, Dong Yuguo, director of public relations in WAL-MART China, told our correspondent.

From porters to trade union Chairmen

Li Yixin entered the village of Dafen Village 3 years ago and was responsible for pporting goods in supermarkets.

Until now, his self positioning is still a blue collar, and he often receives complaints from customers.

In July 2006, the first trade union of WAL-MART was established in Jinjiang, Fujian.

WAL-MART has opened a gap to the Union's closed defense line.

Li Yixin learned about the news and immediately acted with two colleagues. In August 8, 2006, he founded a trade union in the village of Dafen Village, Li Yi's new vice chairman.

Shortly afterwards, the former chairman left WAL-MART and succeeded him as president.

There are 520 employees in Dafen Village, and all the employees, including the general manager, have joined the trade union.

Li Yixin enjoyed the work of the president of the trade union.

Everyone knows him and will greet him when he sees him. "I am very concerned."

WAL-MART set up a trade union in China to make it a benchmark for the whole society.

Subsequently, the efforts of the general committee to promote the establishment of trade unions in non-public enterprises are in the breach.

In the second half of 2006.

The chief executive has a new objective to promote the establishment of a collective wage consultation system in the established trade union enterprises.

The whole people said that this is to enable workers to share the fruits of economic growth and establish a mechanism for the normal wage growth of workers.

At the end of 2006, a survey was conducted by the Shenzhen Federation of trade unions, a member of the WAL-MART trade union.

The results show that WAL-MART has exposed various labor treatment problems in Shenzhen, such as overtime work, and the minimum wage as the base of overtime pay.

WAL-MART employees are most concerned about the issue of remuneration.

At this time, Shenzhen WAL-MART's 14 stores, a distribution center, and WAL-MART headquarters in China have all set up trade unions.

The topic before the Municipal Federation of trade unions is what role the grass roots trade unions should play after they are established.

After the establishment of the trade union of Dafen Village, tourism and table tennis competitions were organized in the staff, and the company also helped the company to make an evaluation of benefits and give benefits to employees on holidays.

"Our approach is almost the same as that of the SOEs."

Li Yi said that the law stipulates that the company should use 2% of the total wage as a trade union fund. "WAL-MART has not delayed the cost.

But Zhang Youquan is not satisfied with these traditional trade union activities. He thinks that the most important way for the trade union to perform its duties is to negotiate with the management, otherwise the trade union will be built in white.

"Some people are biased against Chinese trade unions and think we can not safeguard the rights and interests of workers." Zhang Youquan said, "we must prove that we have combat effectiveness in this regard."

In November 2006, the Shenzhen Federation of trade unions put forward a request for collective wage negotiations to WAL-MART.

As one of the top 500 in the world and one of the main buyers of China's manufacturing industry, WAL-MART is very sensitive to the trade union's position.

"The union of the whole international community is watching you."

When communicating with WAL-MART, Zhang Youquan bluntly said, "it's not that I want to pay attention to you, but I am also concerned about it."

In order to prepare for negotiations with WAL-MART, Li Yixin received the training of the Municipal Federation of trade unions from March 2007.

The lecturer is headed by a federation of trade unions and a professor from the Guangdong Institute of technology.

Li Yixin, a secondary school diploma, was trained in the concept of trade union law, collective contract and negotiation skills.

Struggling to move to the negotiating table

For WAL-MART, negotiations with trade unions are not easy.

It has not explicitly refused to negotiate, but has not yet entered substantive contact.

WAL-MART China headquarters said they would ask WAL-MART headquarters.

The Federation of trade unions has repeatedly hoped that the trade union of WAL-MART China headquarters will represent the trade union of 14 shops and distribution centers of Shenzhen WAL-MART to negotiate with the management.

But the headquarters trade union was "very embarrassed" and said it was incompetent because WAL-MART China had been losing money in recent years.

Most of the members of the headquarters trade union are middle-level managers of the company.

"The union members themselves refuse to talk, so we can see the difficulties of collective bargaining."

In this regard, officials from the Department of labor and social security of Guangdong concluded that in the implementation of collective wage negotiations in non-public enterprises, there is a general "four no": enterprises do not want to talk about, fear to affect profits; workers dare not talk about it, afraid of being dismissed by the management; workers are not familiar with the wage laws and regulations, and the trade unions are not perfect.

"We know this is a difficult task, so we have prepared various plans."

A trade union insider revealed that the intention of the trade union was to constantly pressurize in order to make quick decisions.

WAL-MART responded for the first time in January 2007, providing a sample of the collective contract to the City Federation of trade unions, but was rejected by the Federation of trade unions.

"That contract is a duplication of laws and regulations, and it is meaningless."

Zhang Youquan emphasized that the purpose of collective contracts should be the development above the basic rights prescribed by law.

For this reason, the trade union also proposed a draft contract in June 2007, covering the level of wage increase, the pportation allowance that employees should enjoy, and the pport subsidy that the overtime workers should get, but WAL-MART did not recognize it.

In August 2007, Bai Enwei, senior director of human resources at WAL-MART headquarters in America, visited the Shenzhen Federation of trade unions.

The Federation of trade unions offered Bai Enwei the hope of collective bargaining but did not receive a positive response.

The Municipal Federation of trade unions also met with Wang Pei, vice president of WAL-MART headquarters in China. He reminded that if WAL-MART still did not hold collective bargaining with the trade unions, the Federation of trade unions would negotiate with the WAL-MART administration on behalf of the WAL-MART Union.

According to the "Shenzhen Federation of trade unions' trade union law" promulgated in August 1st, when a lower level trade union fails to perform its duties, the higher level trade union can take collective bargaining on behalf of the People's Republic of China.

"This one is directed against WAL-MART."

A person familiar with the matter said.

Speed up occurred in June of this year.

A vice president of the General Assembly interviewed the vice president of WAL-MART global headquarters on the issue of collective bargaining.

According to people familiar with the matter, the vice president is open-minded and sincere.

Since then, things have come to light.

In July 12th, the Shenzhen Federation of trade unions and the WAL-MART China headquarters held the first collective bargaining.

Wage clause seesaw battle

After three days of negotiations on July 12th, 14 and 17, the two sides reached an agreement on the basic terms of the draft collective contract.

In July 17th, the leading role of the trade union changed into 10 negotiators, such as Li Yixin and other WAL-MART trade unions. The venue of the negotiations was also pferred from the City Federation of trade unions to WAL-MART China headquarters.

It was somewhat unexpected that Li Yixin, 26, was elected chief negotiator.

At first, the WAL-MART China headquarters trade union wanted their people to be the chief negotiator, representing the union of 14 stores and distribution centers.

But this arrangement is widely questioned.

It is said that all the trade unions are independent and have no affiliation with the headquarters trade unions.

The identity of the head of the trade union headquarters has also been questioned. "The chairman of the trade union headquarters is the senior director of human resources and the chief negotiator of the executive team is the same person. How can we talk about this?"

Li Yixin asked rhetorical questions.

Under the coordination of the Municipal Federation of trade unions, 3 representatives from each trade union union were elected, and 10 representatives were elected from 48 representatives.

The 10 men then elect a chief negotiator.

Li Yixin made an oral speech to everyone, and was successfully elected, and 5 of the 10 voted for him.

At 3 p.m. on July 17th, representatives from both sides entered the conference room of WAL-MART headquarters.

The core of the negotiations is the question of wage growth in the next two years.

The trade union's plan is to increase the annual gross wages by 14% in the next two years as the negotiating target and 11% as the lower limit.

In the basic negotiation between the Federation of trade unions and WAL-MART, the trade union has been sticking to the bottom line of 11% and once saw the hope of success.

Just then, something unexpected happened.

In July 14th, the collective bargaining between WAL-MART and local trade unions in Shenyang was also in progress.

The negotiations lasted for 6 hours, and the two sides reached an agreement that the salaries of WAL-MART employees in the next two years will increase by 8% every year.

WAL-MART's China headquarters quickly approved the first collective contract in China.

"This result has led us to passivity."

A trade union member who participated in the negotiations in Shenzhen believes that this is a strategy of WAL-MART's first-hand operation.

After settling Shenyang, WAL-MART became tough on the Shenzhen negotiating table.

Final collective