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The All-China Federation of Trade Unions has set an ambitious target of having trade unions set up in more than 70 per cent of foreign-funded enterprises this year.

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

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The establishment of unions in Wal-Mart has given a big impetus to many other foreign enterprises, Wang said.

Employees in some multinationals such as Carrefour, McDonald's, Motorola and Nescafe soon followed suit.

Between July and September, all the 64 Wal-Mart stores in 30 cities established trade unions with the help of the federation, recruiting more than 6,000 members.

It is for the first time the US retail giant allowed its staff to form unions anywhere in the world.

"China's Law of Trade Union gives workers the rights 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 has met with resistance from some companies, which subtly obstruct workers from setting up unions.

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