KFC latest company to increase salaries

SHENYANG - After a six-month negotiation, US fast food giant KFC on Thursday signed its first collective contract on the Chinese mainland with its employees in Shenyang, capital of Liaoning province.

According to the contract, more than 2,000 workers of the 66 KFC and Pizza Hut outlets, under the Yum! Brands Inc in Shenyang, will get a minimum monthly wage of 900 yuan ($131.70), up from the existing 700 yuan.

Workers will also have an annual pay raise of 5 percent or more, the contract stipulates. With a contract period of 18 months, the trade union will launch a new round of collective negotiations with the company in 2011.