Walmart's new policy has led to strikes in stores across the country to protest against the comprehensive working hours system. What happened?

On May 17, 2016, real news came out from Walmart stores across the country: Walmart was going to implement a comprehensive working hours system, which was collectively opposed by front-line employees.

Since July 1, frontline employees of Walmart stores in Chengdu, Nanchang, Harbin, Shenzhen and other places have stopped work to protest. According to reports, the Nanchang Walmart Bayi Square store has become a "bustling city" recently. Walmart employees here are on a collective strike. The A4 paper attached to the back of their work clothes reads "Walmart employees stand up, resist the comprehensive working hours system, oppose deception, and resolutely defend their rights."

On July 3, the leaders of the Nanchang Federation of Trade Unions asked the head of Walmart's Central China region to report to Walmart's China headquarters and restore the standard working hours system.

On July 11, Walmart International CEO and Asia President Jeff Beth Johnson responded in an interview that he was very confused about the strike initiated by some employees. "The comprehensive working hours system is a very flexible and purely voluntary solution. We have completed employee communication and have received support and recognition from most employees.

Walmart, which usually keeps silent on personnel issues, spoke up this time and gave a positive response to the above-mentioned strike.

In an exclusive interview with Yicai Global on July 14, Walmart Asia President and CEO Scott Price said that he had also seen some employees stop working due to the instigation of some old employees. For Walmart, it is necessary to ensure that customers are served and employees are developed. The new comprehensive working hours system is to better flexibly work hours for employees and to increase the income of some employees.

The strike against the comprehensive working hours system has caused quite a stir this time. So what is the difference between the original standard working hours system and the newly introduced comprehensive working hours system?

The standard working hours system, also known as the standard working system, is a basic working hours system that is determined by legislation to determine the length of working hours in a day and the number of working days in a week, and requires all employers and general employees to generally implement. The standard working hours system is the standard and foundation, and is the calculation basis and reference standard for other special working hours systems. According to the Labor Law and the State Council's Regulations on Working Hours for Employees (State Council Order No. 174), China currently implements a standard working hours system in which workers work 8 hours a day and 40 hours a week. Most companies in my country follow this working hours system.

The comprehensive working hours system refers to the comprehensive calculation of working hours based on weeks, months, quarters, years, etc., but the average working hours and average weekly working hours should be basically the same as the statutory standard working hours. Within the comprehensive calculation period, the actual working hours on a specific day (or week) can exceed 8 hours (or 40 hours), and monthly overtime can exceed 36 hours. It is only necessary to ensure that the average number of extended working hours does not exceed 36 hours per month within the period. Therefore, the comprehensive working hours system is suitable for enterprises with strong seasonality and obvious peak and off-peak seasons.

In summary, the comprehensive working hours system is legal. Why is there so much resistance to its implementation?

For example, the monthly salary standard for employees who implement the standard working hours system is 1,300 yuan in basic salary, 200 yuan in attendance bonus, and 60 yuan in annual adjustment, totaling 1,560 yuan. After changing to the comprehensive working hours system, the salary calculation method will be changed to a normal monthly shift of 174 hours, 8.97 yuan per hour, plus a meal allowance of 0.75 yuan per hour, totaling 1,691 yuan. On the surface, the salary of employees has increased after changing to the comprehensive working hours system, but in fact, this has also increased the uncertainty of employees' work arrangements.

Walmart’s internal employees questioned, “Originally everyone was used to working 8 hours a day, but after the change to the comprehensive working hours system, if management requires us to work 12 hours today and 4 hours tomorrow, we who have signed the contract cannot object. This system is extremely uncertain for us. The hourly workers in the store today may very likely become our tomorrow.” As long as Walmart ensures that the working hours for each employee does not exceed 40 hours per week, it will still comply with the relevant provisions of the Labor Law.

"Moreover, after employees switch to the comprehensive working hours system, if they ask for leave or resign, we are likely to lose the salary that we would have received under the 'standard working hours system', or even leave empty-handed. Both parties have their own opinions, and this round of reform has not yet been finalized. I hope that both labor and management can reach a consensus as soon as possible based on a deep understanding and discussion of the system.

Finally, let's get back to the old business. Is there any misunderstanding when we say "Walmart does not accept the comprehensive working hours system" during the factory inspection?

In fact, this statement is inaccurate. Walmart's statement that it does not accept the comprehensive working hours system only refers to the following two aspects:

1. There is a comprehensive working hours approval document, but employees must be ensured to have one day off every seven days.

The bad news is: even with a comprehensive working hours approval, if your factory cannot implement a seven-day-off-one-day policy, violations will still be issued; but customers may not care.

The good news is: if you have a comprehensive working hours approval document and can ensure that the total working hours (and overtime hours) within the period specified in the approval document do not exceed the limit, it is OK to work overtime for more than 36 hours per month. This regulation basically applies to all customer factory inspections and social responsibility certifications, such as SEDEX, BSCI, BSCI, etc.

2. Walmart does not accept wage calculations based on a comprehensive working hours system.

Article 44, Paragraph (2) of the Labor Law stipulates that "if workers are arranged to work on rest days and no compensatory leave is arranged, wages and benefits of not less than 200% of wages shall be paid." This provision generally only applies to employees who implement the standard working hours system, and the comprehensive working hours system is not restricted! Employees in positions that implement the comprehensive working hours system do not need to be paid 200% overtime wages for working on public holidays as long as the total actual working hours do not exceed the statutory total working hours within a comprehensive working hours cycle. Therefore, for the comprehensive working hours system, there are only 150% and 300% overtime pay concepts, which saves a lot of money for enterprises.

At this point, you should understand why factory audits have been claiming that Walmart does not accept the comprehensive working hours system? In fact, it is not that they do not accept it, but that they accept it conditionally.