McDonald's, KFC and Pizza Hut are facing increased scrutiny of their labor practices in China with an official trade union saying it would take legal action against them if they are found to have underpaid workers. The restaurant chains' employment practices came under investigation in the southern city of Guangzhou last week after a local newspaper said they had been paying many part-time workers between 4 yuan, or 52 U.S. cents, and 5 yuan an hour despite a legal minimum hourly wage of 7.5 yuan set by the city this year. McDonald's and Yum Brands, owner of the KFC and Pizza Hut chains, have rejected the charges. Both say they follow Chinese labor regulations.
See "Union could target fast-food giants in China", Reuters, International Herald Tribune, April 1, 2007