The panel held in favour of the retailer, and against the powerful All China Federation of Trade Unions by ruling that dismissed workers were not entitled to the extra compensation they were arguing for. Walmart had made payoffs to them, of a month’s pay plus an extra month’s pay for every year of service, after closing a store in Changde in Hunan province in March. Later on, Walmart had offered another US$480 each to workers who were holding out for more, offering the extra as compensation for the legal costs they would have incurred. 

Lawsuits expected

Ray Bracy, a senior Walmart official, said: ‘We’re not celebrating here but we think it’s the right decision. We always felt we were doing what was right and what was required by law.’  However, the employees have 15 days to sue Walmart after the arbitration and some are believed to be preparing to do so. Many lawyers and academics have been following the case as it is unusual for a trade union to take the lead in a protest against management. King & Wood Mallesons is headquartered in Hong Kong, launching itself there in November as 'the first global law firm headquartered in Asia'. Source: Financial Times and Reuters