McDonald’s and Yum Cleared

Wednesday, April 11, 2007 4:36
Posted in category Invest in China, The Big Picture
Comments Off on McDonald’s and Yum Cleared

WSJ is reporting that McDonald’s and Yum have been cleared by officials in Guangzhou of underpaying student employees in their stores.

While there are a number of other cities investigating still, McDonald’s and Yum can breath a small sigh of relief…. a small sigh.

As I pointed out earlier this week, it did not matter if either of the three chains had violated the law but whether or not people thought they had.

So, after a week of statements from public officials, students, register clerks, and executives the score is:

1.5 points to the Union who closed McDonald’s and were able to to highlight the need in the public eye to find ways to protect workers in the foreign food service industry

1 point to the students whose plight was the center of a media frenzy for a week

0 to Yum who stuck to their guns and neither conceded they paid too little nor let the union leverage the situation in

-1 to McDonald’s who are now moving their union discussions up a level as a result of the controversy

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