U.S. fast-food chains McDonald's and KFC said Thursday they are working with Chinese authorities to resolve allegations that the companies underpay their part-time workers, as a labor probe expands to other cities. Labor bureaus in southern China's Guangdong province began investigating after the state-controlled newspaper New Express Daily reported that McDonald's, KFC and Pizza Hut were paying part-time workers less than the local minimum wage of about $1 an hour. The companies said they were seeking clarification of labor laws, while China's government-affiliated trade union demanded redress, noting that probes had begun in other provinces and cities, including Shanghai.
See "China Labor Probe Expands to More Cities", Associated Press, The New York Times, April 4, 2007