Chinese Workers at Walmart

Chinese Employees at Walmart

One of the top retailers, Walmart, made an investment in China more than 20 years ago. Due to the size of the country's market and the availability of cheap labor at the time, Walmart saw a significant increase in profitability. However, a recent uproar by the Chinese staff members exposes the difficulties the workers face while working for the company.

Basis for the Conflict

Instead of working for the corporation, many workers choose to be unemployed. The basis for the conflict between the Chinese and the firm is caused by a few things. For instance, the employees have voiced complaints about the company's poor compensation, subpar housing arrangements, and inadequate health benefits. Recently, the company changed the regular working shifts and replaced them with a fixed number of hours. Therefore, the system makes it hard for employees to receive overtime pay as long as the employee completes the allocated hours.

Impact on Employee Compensation

Working for a fixed number of hours in a week eliminates the chances of making the employees earn for the extra hours. It is the right of the employees to receive monetary compensation for the extra hours worked (Hatoff, Robert and Berne 81). In the past, the employees at Walmart used to work for a fixed amount of time in a day. Therefore, the employees enjoyed a regular system with predictable schedules. However, the new changes indicate that all employees will have to complete a specific number of hours as directed by the management. The administration failed to consult with the employees on the changes leading to conflicts between the two groups.

Impact on Employee Fatigue and Productivity

As much as the changes aimed at improving production in the business, the changes are tainting the image of the company in the market due to the issues raised. The employees are an important part of an organization and a major factor in ensuring a successful team. In the changes, it becomes possible for an employee to work for extended periods leading to high levels of fatigue. The management at Walmart needs to understand that fatigue reduces the motivation of employees leading to low productivity as well as heightened chances of making mistakes. Therefore, the management needs to address the complaints of the employees and offer them better-working systems.

Poor Pay

The second complaint is poor pay. The Chinese workers at Walmart complain of longer working hours and poor pay. The workers are demonstrating to force the management to better their remuneration. When the employees in an organization feel under-compensated, the turnover rate increases. The employees fail to develop loyalty towards the business and end up working in the organization while looking for better offers from other organizations. Lack of commitment from employees might lead to reduced productivity as well as loss of the employees to the closest competitors (French 69). The company needs to address the complaints at the soonest time possible. Payment of employees adequately motivates them and builds their loyalty towards the business. Without commitment, it becomes impossible for the employees to sacrifice their time in helping the organization achieve the set targets. Therefore, the best solution is for the management of the organization to have a consultative meeting with the workers and deliberate on the way forward. Solving the situation early enough would ensure the business does not suffer any negative impact from the conflict. The company needs to guarantee the employee of their fairness in dealing with the complaints of the workers in all their investments.

Poor Working Conditions

Lastly, the employees feel that the working conditions are not right. Despite working for long hours and with poor pay, the Chinese workers at Walmart complain of poor working conditions and inadequate medical cover. The business has to provide the employees with a comfortable working condition. Poor working conditions risk the lives of the employees through exposure to possible accidents (Koradecka 258). The complaints by the employees seek to better the working conditions with is their constitutional right. All Walmart employees should have access to similar circumstances as a way of proving no favoritism in the business. However, if the employees from one country receive good pay and working conditions from the company, but those from another country do not, it shows biases from the business, which is not a good image from Walmart.

Employee Supply and Business Profitability

As much as the complaints are genuine, Walmart enjoys a huge supply of employees in the country. The population in China is extremely high. In business, a huge supply of goods leads to lower prices while a short supply leads to higher prices. Therefore, Walmart enjoys the vast supply of employees and reduces the pay due to the supply (Free 72). The primary function of any business is to make profits. Therefore, Walmart tries to maximize the benefits by ensuring higher sales through longer shifts. More so, the business tries to retain higher profits by reducing the expenditure in the form of lower pay for the employees. Therefore, the aim of the company is not to oppress the employees but to make decisions that are good for the company and those that give the business higher chances of meeting the goals of the firm.

The Way Forward

Chinese employees at Walmart expect a keen observation of their rights through better pay, considerate shifts, and better working conditions. The employees feel the company violates their rights by failing to provide positive responses to their demands. However, any business needs to make decisions that will improve the profitability levels. Therefore, Walmart needs to address the complaints of the employees as a way of creating a strong bond between the management and the employees. In a country where the supply of labor is very high, it is understandable why the company might be paying the employees small remuneration due to the oversupply of labor. However, it is important for the two groups to resolve the conflict amicably to avoid negative impacts on the business. Failure to address the issue might lead to more problems leading to losses especially due to limited sales especially on the days when the employees are striking. Such corrective mechanisms will eliminate all complaints and motivate the employees towards better performance.

Works Cited

Free, Rhona C. 21st century economics : a reference handbook. London: SAGE, 2010. Print.

French, Ray. Organizational behaviour. Hoboken, N.J: Wiley, 2011. Print.

Hatoff, Howard I., Robert C. Wert, and Berne Rolston. Law office policy & procedures manual. Chicago, Ill: American Bar Association, Law Practice Management Section, 2006. Print.

Koradecka, D. Handbook of occupational safety and health. Boca Raton, FL: CRC Press/Taylor & Francis, 2010. Print.

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