Chinese officials: Fast food giants broke minimum-wage laws

Chinese officials: Fast food giants broke minimum-wage laws
April 3, 2007

Reuters: Fast food chains, including McDonald's, KFC and Pizza Hut, broke minimum wage laws in the southern Chinese city of Guangzhou, the state-backed labor union said Wednesday.

Guangzhou set the minimum wage for part-time workers at 7.5 yuan (U.S. $0.97) an hour at the start of this year, but outlets of McDonald's, KFC and Pizza Hut, all part of Yum Brands Inc., paid workers less than that, said Li Shouzhen of the All-China Federation of Trade Unions.

A Yum spokeswoman said the company had followed Chinese laws. Yum is now awaiting the results of an investigation into the companies' wage practice by the Guangdong province labor bureau.