Beijing Wal-Mart has agreed to revise a plan on a payroll cut involving 2,000 mid-level managers across its outlets in China after a trade union stepped in to mediate, state media reported on Friday.
The Shenzhen Federation of Trade Unions became involved after the company announced it would eliminate a layer of management in all of its stores, leaving affected employees the option of taking a lower position with lower pay, Xinhua news agency reported.
Wal-Mart's China unit, based in southern Shenzhen, has 147 outlets and over 50,000 employees.
"The company will give a one-off reward of 3,000 yuan ($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 cited by Xinhua 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," said Wang.
An official from the company also confirmed the news.
"After revision, our program is going well. A growing number of employees understood the company's strategy and are willing to accept the arrangement," Chen Lu, a Wal-Mart China public relations official, was quoted as saying.