Both ride-hailing giant Didi and e-commerce powerhouse JD.com have established a union for their staff, in a watershed moment for the Chinese tech sector where organized labor is extremely rare, reports Reuters.
Reuters quoted “two people familiar with the matter” who said that Didi’s union will be initially managed by employees at its Beijing headquarters but will be guided by the government-backed All China Federation of Trade Unions (ACFTU). JD.com’s new group union will coordinate activities between smaller unions that already exist within the company, it said.
Chinese regulators have been cracking down on the country’s biggest tech firms this year, criticizing them for policies that exploit workers and infringe on consumer rights in addition to unleashing a slew of anti-trust probes and fines. The government is also encouraging companies to implement initiatives to share wealth as part of a recent “common prosperity” drive laid out by Chinese leader Xi Jinping to ease inequality in the world’s second-largest economy.