Kraft Foods Inc have agreed to pay its staff higher wages after being accused infringing China’s labor law for failing to consult employees about its plan to move its head office from the capital to Shanghai.
As we have previously reported, the row started when Kraft Foods
announced it would shift its Chinese headquarters from Beijing to
Shanghai in January, due to the company’s reorganization, after it
bought the biscuit and snacks division of Danone in November. The
relocation may have left 345 workers jobless, if they did not accept to
move.
Market Avenue quotes Chen Baoqing, Chairman of the Labor Union as
saying: “The final settlement still needs to be approved by workers at
a meeting tomorrow, and will become effective 15 days after reporting
to the local labor and social security bureau.”