KFC raises pay in initial labor pact
Source: Xinhua |
June 18, 2010, Friday
|
Print Edition
Print Edition
UNITED States fast-food chain KFC in northeast China's Shenyang City yesterday signed its first collective labor contract on the Chinese mainland, agreeing to raise workers' wages and meeting the demands of a local trade union.
According to the agreement, the company's roughly 2,000 employees will get a minimum monthly wage of 900 yuan (US$132) - up from the company's previous offer of 700 yuan - and an annual 5 percent pay raise.
An executive with Yum! Brands Inc in Shenyang said the agreement is the company's first collective labor contract on the Chinese mainland.
Yum! Brands Inc in Shenyang manages 57 KFC fried-chicken outlets and 11 Pizza Hut restaurants.
The company said in a statement earlier this month that most of its employees in Shenyang already have monthly wages of over 900 yuan, and so the signing of the contract "would not necessarily mean workers' pay would immediately rise."
Duan Yang, vice president of the Shenyang City Trade Union, said the inking of the collective labor contract was "significant in that it established a mechanism for negotiations between the employer and workers on wage issues."
The All China Federation of Trade Unions has been promoting corporate collective labor contracts. Its three-year "Rainbow Project" aims to have companies sign collective agreements with trade unions by 2012.
According to the agreement, the company's roughly 2,000 employees will get a minimum monthly wage of 900 yuan (US$132) - up from the company's previous offer of 700 yuan - and an annual 5 percent pay raise.
An executive with Yum! Brands Inc in Shenyang said the agreement is the company's first collective labor contract on the Chinese mainland.
Yum! Brands Inc in Shenyang manages 57 KFC fried-chicken outlets and 11 Pizza Hut restaurants.
The company said in a statement earlier this month that most of its employees in Shenyang already have monthly wages of over 900 yuan, and so the signing of the contract "would not necessarily mean workers' pay would immediately rise."
Duan Yang, vice president of the Shenyang City Trade Union, said the inking of the collective labor contract was "significant in that it established a mechanism for negotiations between the employer and workers on wage issues."
The All China Federation of Trade Unions has been promoting corporate collective labor contracts. Its three-year "Rainbow Project" aims to have companies sign collective agreements with trade unions by 2012.
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