China: McDonald's and KFC probed over low wage accusations
Date: 1 Sep 2011
The Labour Bureau in Guangdong province has begun a probe into allegations that McDonald's and KFC paid part-time employees less than the minimum wage of 7.5 yuan per hour.
The companies have said that they are working with the authorities to resolve the charges, and seeking clarification of labour laws which have been recently amended.
A report in the New Express Daily said that the companies had failed to pay the legal minimum, and had also demanded part-time employees work full-time hours without any of the benefits.
The All-China Federation of Trade Unions, the collective group for state-approved unions, called on the companies to make good any underpayment. The ACFTU has been spearheading a campaign to get greater presence within foreign companies.
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In a recent article, the BBC's economics editor Robert Peston highlighted the fact that in 2012 the chances are that the economy - punch drunk as it is from the various flavours of debt crisis it has been pummelled with over the course of the year - will be hit by the collapse of a major bank and / or government.
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