McDonald's, KFC (China) Probed for Wage Abuses

[Omaha Steve]

http://www.sun-sentinel.com/business/local/sns-ap-china-labor,0,6249241.story?coll=sfla-business-headlines

McDonald's, KFC Probed for Wage Abuses

By ELAINE KURTENBACH
AP Business Writer
Posted March 29 2007, 2:07 AM EDT

SHANGHAI, China -- Labor officials in China's southern province of Guangdong said Thursday they are investigating reports that fast-food chains like McDonald's and KFC pay their part-time workers less than the minimum wage of about $1 an hour.

McDonald's and Yum Brands Inc. spokesmen in China responded by saying their companies abided by the law but were seeking clarification about regulations for part-time workers, especially for students.

A spokesman for the Guangdong Provincial Labor and Social Security Department said officials were looking into reports from workers and local media that staff in the fast-food outlets were being paid up to 40 percent less than the local minimum wage.

"If those foreign companies are actually violating our labor law, they will definitely get punished according to the relevant laws and rules," said the spokesman, who like many Chinese would give only his surname, Zhang.

"I can't comment much since now since we don't have the results yet," Zhang said.

The claims first surfaced in a report by the local newspaper New Express Daily, which said its reporters, posing as job applicants, found that McDonald's, KFC and Pizza Hut were paying part-time staff as much as 40 percent less than the minimum wage for Guangdong.

Minimum wages vary from region to region in China. The minimum wage for Guangdong province is 7.5 yuan ($0.97) per hour.

FULL story at link.

[BayCityProgressive]

1. Good

I am glad China is acting on this. China has so many problems right now, just like us I suppose. There are those in government that do want the workers, environment ect treated fairly, but there are also MANY corrupt officials and the central gov. is having a real problem asserting itself over private business and provincial governments.