McWorld

Exploitation: Taking advantage of an individual or situation for one's full benefit. It often has a negative connotation to it.


I'll admit to succumbing to the KFC down the street a few times a month when I'm pressed for time, but there's a lot of guilt involved in paying twice as much for less tasty food that's twice as expensive. A typical value meal at KFC is about 23元, 230% more than much tastier and fresher Chinese fast food. It's almost always packed for dinner and lunch. I assumed that because of the higher prices, they'd also be paying higher wages. Of course, I was wrong.

The claims first surfaced in a report by the local newspaper New Express Daily, which said its reporters... found that McDonald's, KFC and Pizza Hut were paying part-time staff as much as 40 percent less than the minimum wage for Guangdong. Minimum wages vary from region to region in China. The minimum wage for Guangdong province is 7.5 yuan ($0.97) per hour.The New Express Daily report said McDonald's was paying part-timers only 4 yuan ($0.52) per hour. It said part-timers at KFC earned as 4.7 yuan ($0.61) and Pizza Hut 5 yuan ($0.65).
Washington Post

There excuse wasn't that they weren't paying that low a salary, they were merely confused by just how low they could pay people:

"This was caused by a newly introduced regulation. We are working with the government to seek clarification of these laws," it said. "Yum has always strictly adhered to Chinese laws and regulations."

To be fare, it is almost assured that every restaurant in my neighborhood pays below minimum wage. In many ways China offers one of the freest markets on the planet, and the supply and demand curve for all labor - skilled and unskilled - is clearly in the employers favor. Even with connections into a family or friends business, a college graduate might only expect nine or ten RMB per hour. That comes out a little over $220 for six days a week of work. For the 工人, the workers, it's relatively well documented that the minimum wage often acts as a ceiling to the amount you can make in a week. The pay difference then amongst workers is how many hours you have to work, uncounted, to get it.

Yum! Brands and McDonald's clearly can afford to pay higher wages without significantly cutting into profits. It's a niche market and their restaurants are always packed. So why should it take a part timer almost five hours to buy one value meal. It would take an hour just to buy a single egg tart, nearly two hours for a cup of coke.

Bottom line: Western-run companies shouldn't try to cheat the infantismal Chinese minimum wage. That's low on too many levels.