Union denounces Kraft over planned city switch
26 March 2008
Kraft Foods China was accused by a labor union of violating Chinese labor law on the grounds that the US firm didn't do enough to consult workers regarding the relocation of its headquarters, Reuters reported. The planned move from Shanghai to Beijing, which has been under discussion with workers since March 5, puts 340 jobs at risk. Chen Baoqing, the union chairman, noted that China's new labor contract law requires companies to consult staff before making any major decisions that may affect employee interests. Chen demanded that Kraft make a formal apology for violating the law and give workers the chance to participate in the relocation decision. Last week a spokeswoman for Kraft told state media that half of the 250 non-sales staff in Beijing would be offered jobs in Shanghai. The others would qualify for severance packages that go beyond the minimum legal requirement.
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