McDonalds and KFC have come under fire in China for underpaying their part-time employees. Labor bureaus in the Guangdong province began an investigation upon hearing that McDonalds, KFC, and Pizza Hut (which is owned by Yum Brands Inc., the same company that owns KFC) are paying their part-time employess less than the minimum wage of 7.5 RMB (97 cents) an hour.

A New Express Daily report stated that McDonalds employees earned 4 RMB (52 cents) an hour, those at KFC made 61 cents, and employees at Pizza Hut made 65 cents. The report also said that part-time employees were asked to work the hours of full-time staff but without earning full-time benefits.

McDonalds and Yum Brands have denied any wrongdoing and say that they have always followed all national and local laws and regulations. They have asked for clarification of China’s labor laws. An official at the Shanghai Labor and Social Security Bureau has promised legal action if the allegations turn out to be true.

The All-China Federation of Trade Unions, which is in the middle of a campaign to boost its presence in foreign companies, has said that it expects the fast-food restaurants to set up union branches in some outlets in southern China. The ACFTU succeeded in establishing union branches in Wal-Mart last year.