Retailing, Franchising, and Consumerism Business Intelligence in China

Guangzhou McDonald's Promises To Arrange Trade Union

Following its labor dispute in Guangdong, McDonald's has promised to set up a trade union within the company's Guangzhou network of restaurants in the first half of this year.

Guangdong Federation of Trade Unions says it has contacted McDonald's Guangdong and they have reached an agreement on setting up the trade union and paying some fees to the trade union. The company, along with Pizza Hut and KFC, had previously been accused of paying part-time workers sub-standard wages. Guangzhou, excluding Huadu District, Fanyu District, Chonghua City and Zengcheng City, began to adopt the minimum wage for non-full-time workers on April 1.

Kong Xianghong, vice chairman of GDFTU, says that pushing McDonald's and other companies to establish trade unions is part of their efforts in urging foreign enterprises to set up trade unions in China, and they not only target McDonald's.

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