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January 28, 2011

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Carrefour refuses to increase staff pay

FRENCH retailer Carrefour yesterday come under fire in China for refusing to raise wages for more than a decade.

The criticism comes a day after it was found to be overcharging customers.

According to media reports, the salaries of more than 6,000 employees at about 20 Carrefour stores in Shanghai barely changed between 1998 and 2010 while the average salary of Shanghai workers more than tripled.

The retailing giant has refused to raise wages, declining to accept the collective wage negotiation mechanism that has been practiced in China since the 1990s.

Sources with the Shanghai Federation of Trade Unions said Carrefour officials and representatives of the company's trade union discussed the issue again yesterday.

The results of the closed-door negotiations are not likely to be revealed anytime soon, according to observers, who remain skeptical about the outcome.

"China does not have a compulsory punishment system for those businesses that reject the collective wage negotiation mechanism," said Xia Yongmei, executive vice chairwoman of the trade union in Shanghai's Xinzhuang industrial zone.

The retailer's other problem, revealed on Wednesday, involved 11 of its China stores caught overcharging customers. The company apologized and offered refunds.




 

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