Cafe de Coral under fire for 'greedy'move

Updated: 2010-11-04 08:03

By Timothy Chui(HK Edition)

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Cafe de Coral under fire for 'greedy'move 

University of Hong Kong students eat at a campus cafeteria run by the catering arm of Cafe de Coral Group Wednesday. A students' organization has voiced its support for the employees of the fastfood restaurant chain. The staff accuse their employer of forcing them to accept a pay cut in disguise. Edmond Tang / China Daily

Students and unions are poised to join a growing public boycott of Cafe de Coral and its subsidiaries next week as an online campaign calling for diners to shun the fast-food chain kicked off Wednesday.

Public ire has been leveled at the city's largest fastfood chain after it raised hourly wages of all workers, in light of a new minimum wage starting May, but also eliminated paid lunch breaks which, many say, effectively amounts to a pay cut.

University of Hong Kong Students' Union representative Benson Siu Kin-tao said they will launch their own boycott Monday if the staff at three campus canteens, which are operated by Cafe de Coral's catering arm, Asia Pacific Catering, lose their paid lunch break.

"As the service contracts signed between the company and the university has yet to expire, the staff should be able to retain their benefits," Siu said.

Student union representatives from five other universities are also considering joining the action.

The move comes as a Facebook campaign, doubling from 2,700 members on Monday to 7,190 members Wednesday, launched its own boycott.

Organizing Secretary of the Catering and Hotel Industries Employee's General Union Suzanne Wu Sui-shan said they will canvass restaurant locations in Central, Causeway Bay, Kwun Tong and Mong Kok urging patrons to take their business elsewhere.

Staff at the eatery were offered a raise of HK$2 to HK$3.5 on their current wage at HK$22 and HK$25 per hour if they gave up their daily 45-minute paid lunch break, according to the company which added it was a common practice in the industry and no staff would have a cut in wages.

However, Wu said some workers have already come forward claiming their monthly earnings will go down.

Workers at McDonalds, KFC and Burger King do not get paid lunch breaks.

The local fast food behemoth, which posted a company net profit of HK$513.2 million for the fiscal ending March 31, operates more than 100 local outlets under its name and also owns 11 other fast food chains such as Spaghetti House and Oliver's Super Sandwiches as well as providing catering services to hospitals and a number of universities.

Lai Man-chi, a 32-year-old local resident, said it was easy to ease her conscience by joining the boycott adding the restaurant's main competitor Fairwood had very similar fare and the restaurant's management decision was nakedly greedy and an attempt to skirt the spirit of the minimum wage law.

China Daily

(HK Edition 11/04/2010 page1)