Rotten-food-scandal-hit factory Shanghai Husi sacks 340 workers

The scandal-hit Shanghai subsidiary of US food supplier OSI Group is to lay off most of its staff.

In a statement on the firm's website, Shanghai Husi, which supplied fast-food giants including McDonald's, KFC, Burger King and Dicos, announced it would retrench 340 staff.

The Shanghai Food and Drug Administration said it met executives of OSI (China) yesterday morning, reminding them that OSI (China) had responsibility for Shanghai Husi's violations, according to the China News Service.

The administration also asked OSI (China) to "proactively" help the government with its investigation into the case and "shoulder the main responsibility for food safety".

OSI said in the statement that its Shanghai factory would not shut down completely, because a small number of staff were staying on to help with the authorities' investigations.

Among the workers affected are 226 directly employed by Shanghai Husi and 114 contractors working for the company. These workers would receive compensation in accordance with all applicable laws and the subsidiary's policies, the company said.