 U.S.-based Kraft Foods Inc. faces a possible legal battle after unionised workers claim that the relocation of its China headquarters from Beijing to Shanghai violates the new labour contract law.
The American company will relocate its headquarters from Beijing to
Shanghai by January 2009. The move comes after it purchased Danone's
biscuit and snack division.
Some employees in the Beijing headquarters are apparently now accusing
Kraft of violating China's new labour law, state media reports,
claiming the company failed to consult with them fully before deciding
to relocate. Around half of the 340 staff are expected to lose their
jobs if they choose not to relocate.
"We have considered employees' benefits and offered higher compensation
than the law requirements but employees have their own thoughts,"
Market Avenue quotes Li Lingping, Communications Director for Kraft
Foods China.
Last update : 26-03-2008
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