MINIMUM wages for McDonald's Corp's Chinese workers will be raised by an average of 30 percent, the company said yesterday.
The company, which has been accused in the past of underpaying its part-time workers, said it would adjust the minimum wage for a better brand image amid tighter Chinese labor practices.
Restaurant workers will be paid between 12 percent and 56 percent above the Chinese minimum wage starting from September 1, the world's largest fast-food chain said in a statement yesterday.
About 95 percent of its total Chinese workforce, or 47,500 crews, including part-time workers, will benefit from annual performance incentive programs this year, which also included expanding the bonus to all full-time office workers, the company said. Previously only 70 percent received the bonus.
An official from McDonald's China said all minimum wages paid to employees now meet or exceed the national guidelines on pay, without giving details for comparison.
Overall, the change will average out to a 30-percent pay rise for all McDonald's Chinese crews, according to the Wall Street Journal, citing Jeffrey Schwartz, McDonald's chief executive for China.
Full-time workers in the southern city of Guangzhou will have their monthly wages rise 21 percent to 1,072 yuan (US$142), the report said.
A part-timer in Shanghai now earns 5.30 yuan an hour. No details have been given on the new hourly rate.
Oakbrook, Illinois-based McDonald's now has more than 800 stores in China with an annual increase of around 100 outlets, catching up with fast-food rival Yum! Brands Inc's KFC in the market, worth about one trillion yuan.
Earlier this year, media reports accused McDonald's and KFC's restaurants for violating China's Labor Law by underpaying part-timers, mostly college students, to save costs.
Although local authorities finally cleared the two fast-food giants from any wrongdoing, the issue cast a cloud over their brand images.