China Union Says U.S. Fast Food Chains Broke Wage Law – John Ruwitch

From Reuters:

U.S. fast food chains, including McDonald’s and KFC, broke minimum wage laws in the southern Chinese city of Guangzhou, the state-backed labor union said on Wednesday, urging tougher enforcement of employment laws.

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

Workers at McDonald’s and KFC in Guangzhou confirmed reports by a local newspaper last week that many workers were receiving less than the minimum wage, particularly university students working part time without contracts. [Full Text]

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