Hong Kong fast-food chain backs down on pay plan after boycott

Nov 7, 2010, 9:57 GMT

Hong Kong - Hong Kong's biggest fast-food chain on Sunday said it had ditched plans to scrap paid lunch breaks for its employees after a public and Facebook campaign was mounted boycotting its restaurants.

Cafe de Coral said it would not be implementing the move which trade unions had claimed would leave many of its workers with less take home pay.

The chain had offered workers who earn between 22 and 25 Hong Kong dollars per hour (2.83 and 3.22 US dollars) a pay rise of between 2 and 3.5 Hong Kong dollars per hour.

However, in accepting the pay rise, workers would no longer be paid for their 45-minute lunch break, which would equate to a pay cut for many workers.

Around 3,000 people joined a Facebook group calling for a boycott of the chain which it called unscrupulous.

Trade Unions also urged people not to dine at the chain which has 149 Cafe de Coral outlets in Hong Kong, plus around 150 others restaurants such as the Spaghetti House and Oliver's Super Sandwiches.

Cafe de Coral had defended the new pay scale claiming it was crucial in the light of a new minimum wage law which is due to come into effect next year.

It said many of its employees had accepted the offer but said it had decided to withdraw it to 'alleviate public doubt and for the purpose of social harmony.'

Trade unions hailed the move as the first victory since Hong Kong passed its first minimum wage law in July.

A working party is expected to set the level in the coming months.

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