Tesco, the world’s third largest retail and the Fortune 500 company, signed the first collective contract in China today. It covered nearly 30,000 working staff in 109 supermarkets, 14 convenience stores and 6 distribution centers around the country.

It was made clear in the Tenth Provision that Tesco will adopt a salary system featuring workplace democracy and will determine the average annual pay growth after equal consultation with its labor union in February when both sides will consider consumer price index (CPI) growth, Tesco’s profitability and survey findings of the industry’s general salary position.

Another highlight was that Tesco will sign a labor contract, which has no specified term, with workers who serve more than five years and it will not hire workers under labor dispatch programs.