Law relating to China's foreign-funded enterprises also clearly regulates that workers in foreign-funded firms have the right to set up trade unions simply by making proposals to the local grassroots trade union.

"According to the law, companies have no right to oppose the setting up of a trade union. On the contrary, they must provide the necessary support, such as a location and office stationary," Wang said.

According to Sun, when BBA prepared to set up a trade union, the foreign side had some worries. They worried that a trade union would lead the staff and workers to strike like foreign trade unions when employers and employees fail to reach a mutual understanding.

Wang said that multinational companies have misunderstood Chinese trade unions. "Chinese trade unions differ from those in foreign countries, and this has helped boost membership. Chinese unions emphasize cooperation between workers and management."

Sun said management and staff are both satisfied with their trade union. Up to now, 97 percent of staff and workers at BBA have attended trade union meetings.

"Today, our trade union is on the right track," he said. "It has largely increased the efficiency of the company and resolved nearly 20 conflicts."

Strengthening communication

"We will continue to push multinational companies, including Fortune 500 firms, to set up trade unions in China in 2009," Guo said.

According to Wang, many well-known multinational companies in the Fortune 500 have not set up trade unions, including Microsoft and Wyeth.

"In fact, the main problems do not exist on the foreign side but on the Chinese side," said Wang. "Many Chinese staff lawyers and human resource managers in those multinational companies do not totally understand the related laws, so they deliver the wrong messages to the foreign side."

Hence, ACFTU has determined to change its tactics. "We will directly communicate with their foreign headquarters," Wang said.