| Trade union: McDonald's, KFC violate labor rules |
SHANGHAI, Apr. 4 -- China's top trade union today said McDonald's Corp and Yum Brands Inc's KFC violated labor laws by underpaying part-time workers and urged them to correct wrongdoing and pay compensation.
McDonald's and KFC use labor illegally in China's southern Guangzhou city and must stop the practice immediately, the All-China Federation of Trade Unions said in a statement on its Website, according to Bloomberg.
McDonald's, KFC and Pizza Hut in Guangzhou pay part-timers up to 40 percent less than the minimum wage and make them overwork, a report by local newspaper New Express said last week. Both McDonald's and Yum denied the accusations March 29. KFC declined to comment today and McDonald's will make a statement later.
International companies in China are increasingly being publicly criticized over ethical issues. Wal-Mart Stores Inc., the world's largest retailer, last year allowed employees in China to unionize following criticism that the company exploited the lack of employee protection in the country to lower costs.
McDonald's pays part-timers 4 yuan (52 US cents) per hour in Guangzhou, where there is a minimum wage of 7.50 yuan, according to the New Express. KFC pays 4.70 yuan and Pizza Hut 5 yuan, according to previous media reports.
The union will start investigations at restaurant chains in other Chinese cities for possible rule breaches, today's statement said.
"The union will fight uncompromisingly to protect workers' rights,'' Li Shouzhen, a senior official at the union said in today's statement. All companies in China, regardless of size and ownership, must abide by local laws and regulations, he said.
McDonald's, the world's biggest restaurant chain, owns 789 restaurants in China, while rival Yum has more than 1,700 KFC restaurants in the country.
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