China union says U.S. fast food chains broke wage law (3 page story)

[Omaha Steve]

http://www.reuters.com/article/ousiv/idUSHKG23155420070404

China union says U.S. fast food chains broke wage law
Wed Apr 4, 2007 5:00AM EDT

By John Ruwitch

GUANGZHOU, China (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: Quote, Profile, Research), and KFC and Pizza Hut, which are part of Yum Brands Inc (YUM.N: Quote, Profile, Research), paid workers less than that, said Li Shouzhen of the All-China Federation of Trade Unions.

"This conduct violates the relevant rules of our nation's labor law," said Li, head of the union's Social Security Work Department, according to a report in the official People's Daily.

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

McDonald's head of government relations in China said they were working with officials to investigate the salary issues, but the firm had not been in touch with the union. It has said it follows relevant laws and regulations.

FULL story at link.