Thailand KFC Faces Employee Lawsuit For Unfair Practices

[webfact]

KFC EMPLOYESS FORCED TO LIVE ON INSTANT NOODLES AND LEFTOVER FRIED CHICKEN

Complaints over KFC's 'unfair practices'

By THE NATION

File photo - Source: Wikipedia

Employees of the KFC fast-food restaurants filed a compliant with the Labour Relations Committee yesterday about alleged unfair employment practices and job termination, revealing that they were given instant noodles and leftovers to eat while the firm earned Bt6 billion a year.

Meanwhile, Yum Restaurants International (Thailand), which runs the KFC and Pizza Hut chain, issued a statement saying that senior executives had directly addressed the issue under the company's "pro-employee" agenda.

And, Milind Pant, managing director of the company, said yesterday in response to the complaint that it treated all the employees fairly, complying with Thai laws.

Former KFC employees Krit Suang-aranan, Siwaporn Somjit and Apantri Charoensak showed up at the committee's offices yesterday to complain that they were let go of unfairly because they had gathered 260 signatures to propose a 10-point demand including a salary rise, a bonus, additional benefits and one free meal a day. The three were accompanied by the vice president of the Thai Labour Solidarity Committee (TLSC), Chaiyasit Suksomboon.

The complainants, who previously supervised 33 KFC branches with 900 workers in Bangkok, Samut Prakan and Pathum Thani, claimed that employees were given an unfair wage of merely Bt27 per hour or Bt5,200 a month.

However, Milind said the company had increased the wages for all part-time employees by 10 per cent since April 4 due to high inflation. So, a part-time employee who worked more than 20 days per month was paid Bt6,500 monthly. Earlier, it announced that it would give 10 per cent incentives to employees based on their store performance late last year.

"We insist that we pay them equal or more than other companies," he added.

For full-time employees, the company had announced it would give them a five per cent salary hike early this year and another four per cent salary hike in June, he said.

"These workers live on instant noodles and leftover fried chicken. Some finish work as late as 1am, and they are not even given any transport allowance," Siwaporn said, adding that this was despite the fact that the company earned between Bt5 billion and Bt6 billion a year.

She added that her group had been forced to resign for allegedly inciting the workers and the company had also posted negative comments about them on its website.

On the other hand, Apantri said the company's lawyers had spoken to them on May 3 and announced unofficially that the company would raise salaries by 4 per cent from June 4, as well as establish a social-security fund for workers from next January.

Chaiyasit, meanwhile, said the company was clearly treating employees unfairly and that the committee would discuss measures such as campaigning for a boycott of KFC food products. They will also file a complaint with the International Labour Organisation, the National Human Rights Commission, the prime minister as well as the Labour Court, he said.

Milind responded that his company had terminated those three former area managers because they violated its code of conduct. They had used the emails of the company to spread false information to other employees in lower positions, such as restaurant managers in a bid to get their support.

He said they claimed they were members of the company's welfare committee even though they were not, and that they persuaded others to support their actions. Being in higher positions and claiming they represented the welfare committee, other lower position employees trusted them.

"Each of the employees is valued. We care for everyone. I don't know who is misguiding them (the three terminated employees)," Milind said.

In a statement, Yum Thailand said that the company had a family of 10,000 workers in 325 restaurants in 72 provinces and that it valued a "pro-employee" environment where employees and the company had a direct relationship.

The statement said that Yum always sought feedback so it could improve its "pro-employee" policies and that it had recently enhanced both short- and long-term benefits for all full-time employees. It added that Yum was committed to complying with the law.

The statement said the management had received a request from some employees who constituted a very small part of the 10,000-strong family, and that senior management had met with the group personally as per the principles of the company's "pro-employee" agenda.

-- The Nation 2011-05-10

[KRS1]

Is it me or does Colonel Sanders look Chinese?

[FOODLOVER]

Had to "Force" them to eat instant noodles? I call BS!

[kuffki]

I suppose Toyota employees should also get a brand new car for free!

Forced to eat noodles ??? I doubt anyone forced them. Do not like noodles go buy what you like!

Left overs food, as in unsold food! How is that leftovers??? Why should company put up a banquet for the staff?

Travel allowance? Is that a joke? Do not like to work or finish late, find another job!

Were paid ONLY 27 baht per hour?? Well that's ONLY the salary in Thailand . Are employees brain surgeons? Or highly educated staff ??

There is nothing unfair in removing those who disturb company operations. They used company time and money for their own agenda, further more they did not contact the management to voice their concerns prior to creating a problem .

If you ask me, nothing but 2 gold diggers trying to make some money.

KFC is a business and profits it makes is not an employees business . If employee has a problem with company profits, they are welcome to open their own.

[Ulysses G.]

Capitalism at its worst.

The salaries and conditions suck, but the employees are probably still dong better than they would at most Thai restaurants or businesses.

[tourismtiger]

I do not know if their treatment of personnel is fair, but the evidence shows they do not give a cluck about their chickens.<br><br>

[farang000999]

how much do the other companies pay for minimum wage?

[asdecas]

That's finger lickin' bad!

[tcmill]

Price of KFC in Bangkok about 130 baht

Price is KFC in New Zealand 140 Baht

Wages for staff in New Zealand $13 hour = 290 baht an hour

Wages for staff in Bangkok 27 baht an hour

KFC, restaurant brands in New Zealand still make a profit when they pay 10 times more in wages than thailand and charge the same price

Also the chicken is no doubt sourced cheaper here too

I am a capitalist but when I see the disgusting super profits these businessmen make while paying their staff nothing so they can buy their latest merc to show their friends

it makes me want to be a socialist

Same goes for McD.

As long as their is cheap supply of labour in Thailand the chinese will continue to make massive profits

[EODghost]

Forced to eat noodles. Bu**Sh**.

How much do Thais pay their employees?

Maybe the Labor Relations Committee should check that one out? OH, sorry, too busy being bought off by rich Thais to do that...never mind.

[rvdk]

Kuffki, who are you? You call people who make 27 baht per hour, gold diggers? Travel allowance would be fair, if they take the bus, that is two hours work. The bus, bet you would take a taxi Kuffki, gold digger.

[stkyricesf]

I hope those kids win their case. Working for less than $.89 an hour? I'd be screaming too. Farang scream if their charged more than 10 baht ($.33) for a bus ride.

[Xonax]

Don´t forget to use the TIP-BOX next time you visit KFC:-)

[Fookhaht]

Price of KFC in Bangkok about 130 baht

Price is KFC in New Zealand 140 Baht

Wages for staff in New Zealand $13 hour = 290 baht an hour

Wages for staff in Bangkok 27 baht an hour

KFC, restaurant brands in New Zealand still make a profit when they pay 10 times more in wages than thailand and charge the same price

Also the chicken is no doubt sourced cheaper here too

I am a capitalist but when I see the disgusting super profits these businessmen make while paying their staff nothing so they can buy their latest merc to show their friends

it makes me want to be a socialist

Same goes for McD.

As long as their is cheap supply of labour in Thailand the chinese will continue to make massive profits

Point well-made.

I've always taken notice how I pay the same price for KFC chicken here as in the west. But shocked that employees here make less than 10% of KFC wages in the west.

Some fat cat is pocketing a huge profit margin on the backs of hapless employees who can barely afford the cheapest of BKK's dormitories and transportation beyond the "red bus."

Yes, capitalism at its worst.

Edited May 10, 2011 by Fookhaht

[rucus7]

Had to "Force" them to eat instant noodles? I call BS!

Let me help you grasp this translation, forced as in all they can afford. Instant noodles are inexpensive. No one held a gun to an employee's head. figurative not literal.

[KRS1]

Swensens, Mcdonalds, Burger king, Subway, Pizza Co, Pizza Hut

ALL pay similar wages. in Thailand, only the managers are making the big bucks.

[Fookhaht]

Don´t forget to use the TIP-BOX next time you visit KFC:-)

And can you guarantee the KFC boss keeps his hand out of it?

[LJW]

27 baht per hour sure isn't much, but it is standard throughout Thailand...<BR>I hope they win

[New007]

"Each of the employees is valued. We care for everyone. I don't know who is misguiding them (the three terminated employees)," Milind said.

What a statement!!!! The value is 27 Baht per hour!!! What else can you get for 27 Baht? Modern slavery in my opinion.

[kuffki]

Kuffki, who are you? You call people who make 27 baht per hour, gold diggers? Travel allowance would be fair, if they take the bus, that is two hours work. The bus, bet you would take a taxi Kuffki, gold digger.

Who am I ? Is that a rhetorical question???

27 per hour is a wage in Thailand for unskilled and uneducated labor! Do not like it?- tough luck!

Minimum daily wage is 150-190 for 9-10 hour day, so they get double the daily minimum.

Go see how much salary girls/ boys get at your local . 4000 per month if lucky 5000.

Yes the 2 making trouble are gold diggers because they trying to get compensation for being dismissed.

Travel allowance, yes when you sales exec or manager, not money for you to get to and from work.

[featography]

I suppose Toyota employees should also get a brand new car for free!

Forced to eat noodles ??? I doubt anyone forced them. Do not like noodles go buy what you like!

Left overs food, as in unsold food! How is that leftovers??? Why should company put up a banquet for the staff?

Travel allowance? Is that a joke? Do not like to work or finish late, find another job!

Were paid ONLY 27 baht per hour?? Well that's ONLY the salary in Thailand . Are employees brain surgeons? Or highly educated staff ??

There is nothing unfair in removing those who disturb company operations. They used company time and money for their own agenda, further more they did not contact the management to voice their concerns prior to creating a problem .

If you ask me, nothing but 2 gold diggers trying to make some money.

KFC is a business and profits it makes is not an employees business . If employee has a problem with company profits, they are welcome to open their own.

First thing, 3 people, managing 33 stores and 900 employees, filed complaints in behalf of the 900 employees that were being paid B27/hr, or B5200/mo. Now Milind claims wage increases were given after April 4, but the article doesn't state when the 3 managers filed for wage increases. If they had filed before April 4, KFC ups the wage after, the company would be making an effort to be fair. If the 3 did indeed use KFC resources to solicit support from employees, then that could be justifiable cause for termination. One paid meal a day is a standard benefit given by a multitude of employers in Thailand. I have not heard about transportation reimbursements for employees, given at other companies though. Its interesting the comment made that some employees worked as late as 1am, but when did those employees begin work? Its not uncommon to stagger work shifts so you have a small army of employees at all hours, but keep the actual shifts at 8-10 hrs.

[SabaiBKK]

I suppose Toyota employees should also get a brand new car for free!

Forced to eat noodles ??? I doubt anyone forced them. Do not like noodles go buy what you like!

Left overs food, as in unsold food! How is that leftovers??? Why should company put up a banquet for the staff?

Travel allowance? Is that a joke? Do not like to work or finish late, find another job!

Were paid ONLY 27 baht per hour?? Well that's ONLY the salary in Thailand . Are employees brain surgeons? Or highly educated staff ??

There is nothing unfair in removing those who disturb company operations. They used company time and money for their own agenda, further more they did not contact the management to voice their concerns prior to creating a problem .

If you ask me, nothing but 2 gold diggers trying to make some money.

KFC is a business and profits it makes is not an employees business . If employee has a problem with company profits, they are welcome to open their own.

wow ... impressively inhuman .... somewhere I PITY YOU FOR BEING SO COLD HEARTED.

[saroq]

I can't believe the comments suggesting that these employees don't have a legitimate complaint or that they are just trying to cause trouble. How does anyone live for a month on 5,200 baht in Bangkok. Typical of some expats who seem to think that the local population has some magical way of making 5,000 baht into a fortune in Thailand. It isn't. It's a little above slave labor. True it may be the official rate but it raises the broader of the right of Thai workers to demand better wages. I suggest those posters who criticize their actions take it upon themselves to live on 5,200 baht a month. Don't expect any of them will but they still complain that workers are lazy and paid to much. Seriously who's going to work hard for that sort of cash?

[beano2274]

My Brother in Law worked at MK before, and they did not allow the staff to eat the food, even leftovers.

He now works at Pizza Company and is sick of the sight of Pizzas.

[realitycg]

Price of KFC in Bangkok about 130 baht

Price is KFC in New Zealand 140 Baht

Wages for staff in New Zealand $13 hour = 290 baht an hour

Wages for staff in Bangkok 27 baht an hour

KFC, restaurant brands in New Zealand still make a profit when they pay 10 times more in wages than thailand and charge the same price

Also the chicken is no doubt sourced cheaper here too

I am a capitalist but when I see the disgusting super profits these businessmen make while paying their staff nothing so they can buy their latest merc to show their friends

it makes me want to be a socialist

Same goes for McD.

As long as their is cheap supply of labour in Thailand the chinese will continue to make massive profits

NZ gets $13 per hour? I remember in Aus they employed people for around $5-6 per hour and these are mostly teenagers 16yrs and above. This was there pocket money, yes they were unskilled and just wanted some extra money but they also work very hard, and having customers constantly complain = no fun.

I assume nearly all major food chains are doing exactly the same thing. They probably all do cheap labor practices.

For those of you who think 27baht per hour is enough to survive then I suggest for them to try it and see how far they get while having to pay bills in this economy

[prakhonchai nick]

Nobody is forced to work for any employer.

If the working conditions, pay and other benefits are unsatisfactory to them, they may leave and seek employment elsewhere.

[rotary]

I believe all these KFC workers knew what the wages were when they went to work and i also believe they knew the benefits so...........whats the problem? If they do not like the deal quit. Unions have ruined the west and looks like it might start in Thailand.

[HeavyRockStar]

I suppose Toyota employees should also get a brand new car for free!

Forced to eat noodles ??? I doubt anyone forced them. Do not like noodles go buy what you like!

Left overs food, as in unsold food! How is that leftovers??? Why should company put up a banquet for the staff?

Travel allowance? Is that a joke? Do not like to work or finish late, find another job!

Were paid ONLY 27 baht per hour?? Well that's ONLY the salary in Thailand . Are employees brain surgeons? Or highly educated staff ??

There is nothing unfair in removing those who disturb company operations. They used company time and money for their own agenda, further more they did not contact the management to voice their concerns prior to creating a problem .

If you ask me, nothing but 2 gold diggers trying to make some money.

KFC is a business and profits it makes is not an employees business . If employee has a problem with company profits, they are welcome to open their own.

WELL SAID,, if the thais was not in such a BIG RUSH TO BE LIKE SOME WESTERN COUNTRY'S they would appreciate the Extra Monies to help their families... but their a greatest GREED level is at the very bottom of the economic latter.. I call it BAR GIRL FEVER.. a lot of people think the west is SO rich... they dint realize KFC in USA is designed for High School and college Kid living at home with parents..Thais think of it as a High paying Fortune 500 company...LOL.. all they want is a NEW Home an a Stupid Foreigner to buy it.. CASE CLOSE!!

[KRS1]

I suppose Toyota employees should also get a brand new car for free!

Forced to eat noodles ??? I doubt anyone forced them. Do not like noodles go buy what you like!

Left overs food, as in unsold food! How is that leftovers??? Why should company put up a banquet for the staff?

Travel allowance? Is that a joke? Do not like to work or finish late, find another job!

Were paid ONLY 27 baht per hour?? Well that's ONLY the salary in Thailand . Are employees brain surgeons? Or highly educated staff ??

There is nothing unfair in removing those who disturb company operations. They used company time and money for their own agenda, further more they did not contact the management to voice their concerns prior to creating a problem .

If you ask me, nothing but 2 gold diggers trying to make some money.

KFC is a business and profits it makes is not an employees business . If employee has a problem with company profits, they are welcome to open their own.

WELL SAID,, if the thais was not in such a BIG RUSH TO BE LIKE SOME WESTERN COUNTRY'S they would appreciate the Extra Monies to help their families... but their a greatest GREED level is at the very bottom of the economic latter.. I call it BAR GIRL FEVER.. a lot of people think the west is SO rich... they dint realize KFC in USA is designed for High School and college Kid living at home with parents..Thais think of it as a High paying Fortune 500 company...LOL.. all they want is a NEW Home an a Stupid Foreigner to buy it.. CASE CLOSE!!

You need to start dating girls other than bargirls.

Step up your game.

Edited May 10, 2011 by KRS1

[CobraSnakeNecktie]

sounds more like a profit shakedown.

hey if they don't like working there then vote with your feet.

When I was in high school I worked in a McD's. They had a policy of only giving a small sandwich per employee per shift. We ate like kings though. How can you prevent an employee from sneaking food? making them wear a locked muzzle maybe.

Not the healthiest food though...