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Wal-Mart revises its plan for payroll cuts
WAL-MART Inc has agreed to revise a plan on a payroll cut involving 2,000 mid-level managers in China after a trade union stepped in to mediate, it was reported yesterday.
The Shenzhen Federation of Trade Union became involved after the company announced it would eliminate a layer of management in its stores, leaving affected employees the option of taking a lower position with lower pay, Xinhua news agency said.
Wal-Mart's China unit, based in Shenzhen, has 147 outlets and more than 50,000 employees. "The company will give a one-off reward of 3,000 yuan (US$440) to those who agree to be transferred to work in other stores, or receive training offered by the company," Wang Tongxin, vice chairman of the union, was quoted as saying. "After talks with the employee representatives, Wal-Mart has taken the concerns of the employees and made big revisions to its plan, which finally reached a win-win situation."
Chen Lu, a Wal-Mart China official, was quoted as saying: "After revision, our program is going well. A growing number of employees understood the company's strategy and are willing to accept the arrangement."
The Shenzhen Federation of Trade Union became involved after the company announced it would eliminate a layer of management in its stores, leaving affected employees the option of taking a lower position with lower pay, Xinhua news agency said.
Wal-Mart's China unit, based in Shenzhen, has 147 outlets and more than 50,000 employees. "The company will give a one-off reward of 3,000 yuan (US$440) to those who agree to be transferred to work in other stores, or receive training offered by the company," Wang Tongxin, vice chairman of the union, was quoted as saying. "After talks with the employee representatives, Wal-Mart has taken the concerns of the employees and made big revisions to its plan, which finally reached a win-win situation."
Chen Lu, a Wal-Mart China official, was quoted as saying: "After revision, our program is going well. A growing number of employees understood the company's strategy and are willing to accept the arrangement."
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