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From the Magazine.Issue 2016

Out Of Time

12 · 21 · 2016 |  by

Walking into a Walmart in China at almost any given time, you wouldn’t guess that workers have been sporadically striking and sparring with management over work hours. Essentially, Walmart wants to be able to assign hours based on a set average each month, rather than have employees work from nine-to-five. The plan would wipe out overtime pay for working irregular shifts, so the company’s more than 100,000 workers are less than impressed.

Employees have reportedly been persecuted for attempts to form unions and have complained of harassment from employers when attempting to contact labor bureaus.

It’s a familiar story to Western audiences; Walmart has long had quarrels with its staff in countries across the globe and has stamped out union activity wherever it can. But in China, where labor laws are still theoretically influenced by communism, a complex picture emerges of overtime work. In many cases China’s labor system has taken on elements of Western work culture, while still bedeviled with problems regarding worker rights.

In the case of Walmart, two former employees have formed an organization that takes on some aspects of union work without being a union. This became known as the Walmart Chinese Employee Fellowship. There is no set membership and it has just one full-time staff member. It has, however, provided an avenue for workers to communicate nationwide in a country where the only approved labor unions are run by employers or the authorities under the auspices of the All China Federation of Trade Unions (ACFTU).

The clash between Walmart and its employees continues, exacerbated by the fact that Walmart salaries have stagnated while costs of living in China have increased, making a onceattractive job now seem lackluster. The situation is a sobering reminder that workers face an incredibly difficult time reducing or even preserving current working hours and increasing overtime pay. Aside from the loss of overtime, workers have also expressed concerns that the new shifts would wipe out their ability to work second jobs, while making it easier for supervisors to schedule unreasonable shifts and force employees to resign without severance pay.

On the books, China has pretty solid protections for overtime pay. Unlike in the US, the concept of a “salaried employee”, who receives a set perweek or per-month salary regardless of hours worked, doesn’t actually exist in China unless a labor bureau has specifically given permission— even though it’s still common for contracts to stipulate a wage by month regardless of the type of work arrangement.

With the permission of a labor bureau, the company can also opt for “flexible working hours” or a “comprehensive” system, but this permission has to be constantly renewed.

In the case of Walmart, the company received this permission, but when it asked employees to sign new contracts that would make it official, workers went on strike. Some workers have also claimed that they were coerced into signing documents that were used by the company to obtain permission for these new working hours.

If a company lacks permission for a flexible or comprehensive working hour system, employees are to be paid by the hour, and paid overtime once the work exceed 40 hours a week or eight hours each day.

That is how it is supposed to work for everyone, regardless of whether they are a factory worker or senior manager, and in the vast majority of cases, even people who appear to be contractors are actually treated as employees according to the law—in theory.

“The only ones who truly follow working-hour regulations in Chinese labor law are state organs and public institutions, and a few more ‘standardized’ large corporations and state-owned enterprises,” Wang Jiangsong, a labor scholar affiliated with the China Institute of Industrial Relations, points out. “In reality, sixday work weeks, or 11-hour work days are very common,” he says of private enterprises.

Wang says that, unfortunately, quitting is rarely a good option for workers facing unreasonable overtime. “‘Voting with your feet’ is only effective in situations where the labor force is lacking, where there are not enough workers,” he says. “Usually you’ve climbed out of the tiger’s cave and into the wolf ’s den.”

For workers trying to claw back pay for extra hours worked, the situation is particularly tough.

“Our government, the [national] labor union has promoted relying on existing legal procedures to apply for labor arbitration or start lawsuits… The net benefit from doing this, for the laborer, is not very large, because even if you win, the process takes too long, so the costs are too great,” Wang says. “In 2013, I discovered some data. If a laborer wants to pursue 3,000 to 4,000 RMB of salary [owed], the cost that he…has to pay can potentially be 8,000 to 9,000 RMB to go through all the steps in the judicial process.”

The frequency and severity of overtime does, of course, vary by profession, though it’s interesting to note that among the hardest hit are white collar workers.

“I’ve found that high-tech industries are pretty hard hit in terms of overtime, so cases in white-collar sectors of over-exertion or death from overwork are numerous,” Wang says, also listing textiles and services among the afflicted industries.


“Out Of Time” is a story from our newest issue, “Climate Change”. To read the whole piece, become a subscriber and receive the full magazine. Alternatively, you can purchase the digital version from the iTunes Store.

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