An ambitious target has been set by the All-China Federation of Trade Unions to have trade unions established in over 70 percent of foreign-funded companies in 2007.

Wang Ying, an official with the federation's Grass-Root Organization and Capacity Building Department, said more than 60 percent of foreign-funded firms had set up trade unions by the end of last year. This is a sharp increase from 2005.

The establishment of unions in Wal-Mart had given a big impetus to many other foreign enterprises, Wang said. Employees in multinationals such as Carrefour, McDonald's, Motorola and Nescafe followed suit.

Between July and September all the 64 Wal-Mart stores in 30 cities established trade unions with the help of the federation and recruited more than 6,000 members. It's the first time the US retail giant has allowed its staff to form unions anywhere in the world.

"China's Law on Trade Unions gives workers the right to set up or join trade unions," Wang said. "Foreign enterprises must abide by China's laws if they do business in China."

According to the law, which was promulgated in 1992, trade unions are formed by employees on a voluntary basis. No organization or individual shall obstruct or restrict them from joining unions.

Wang admitted the federation had met with resistance from some companies which subtly obstruct workers from setting up unions. "Many of the foreign enterprises don't fully understand the role of China's trade unions," Wang said.

They not only safeguard the legitimate rights and interests of workers but also contribute to the enterprises' development and assist complete their production tasks, he pointed out.

"Trade unions can play a good role in building and ensuring harmony in enterprises," Wang said. Some companies which were long opposed to unions had now changed their attitude, Wang observed. He said unions in foreign enterprises had performed their duties.

For example the Wal-Mart unions in Fuzhou, capital of Fujian Province, succeeded in persuading the management to raise part-time workers' wages to 6 yuan (US75 cents) per hour above the lowest wage standard of 5.5 yuan (US69 cents).

The stores also agreed to abolish the probation period for part-time workers. The Wal-Mart union in Shenyang, capital of Liaoning Province, successfully negotiated the right to one day off a week.

Dong Yuguo, a spokesman for Wal-Mart (China) said, "The management and the trade union have been getting along with each other very well."

"Our task is to raise workers' awareness and let them know that joining trade unions is the best way to safeguard their legitimate rights and interests," Wang said.

At the end of 2005 China had 1.174 million grass-root trade unions with 151 million members.

(China Daily January 5, 2007)