Retailing, Franchising, and Consumerism Business Intelligence in China

Foreign Fast Food Companies Accused Of Potentially Violating Chinese Labor Laws

The Guangdong Provincial Labor and Social Insurance Department says that they have begun an investigation on the illegal use of workers by foreign fast food giants McDonald's, KFC and Pizza Hut.

Local media reports that a GPLSID representative surnamed Zhang says that they have received complaints about the three companies violation of labor and are right now investigating and collecting evidence before a final report can be made.

McDonald's, KFC and Pizza Hut's respective labor contracts with their part-time employees reportedly violate the minimum salary standard for non-full-time employees. For McDonald's, it pays RMB4/hour for its part-time employees while the minimum salary for non-full-time staff specified by the Guangdong government is apparently RMB4.3/hour.

In response to the accusation, McDonald's says that it has been committed to offering equal work opportunities, safe work environments and challenging career development for all its employees and its salary standard conforms with the government's relevant laws and regulations.

A spokesman from YUM, owner of KFC and Pizza Hut, tells media that some people have confused Guangdong Province's non-full-time labor rule, which was enacted on January 1, 2007, with the government's traditional law and practice for the region, so they will maintain contact with the Guangdong labor department to make sure that their behavior fits Chinese law.

Be the first to comment on "Foreign Fast Food Companies Accused Of Potentially Violating Chinese Labor Laws"

Leave a comment

Your email address will not be published.