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McDonald's in a pickle over price rise and low wages

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Fast-food giant McDonald's has come under attack from unions for beefing up the price of its hamburgers in Hong Kong while paying its part-time staff less than the average market wage.

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The average 4 per cent price rise, effective since just before Christmas, followed the chain's first quarterly loss in 47 years because of fierce competition from rivals such as Burger King. But a simple hamburger at Hong Kong McDonald's has almost doubled in price - from $3 to $5.50.

In contrast, McDonald's in Japan has cut its prices to 80 yen ($5.20) for a hamburger.

According to a survey by the Federation of Trade Unions on the hourly pay for part-time workers at 11 chain stores - including McDonald's, ParknShop, Wellcome, 7-Eleven and Maxim's - McDonald's pays its staff the lowest wages.

Part-time workers at McDonald's are paid an average of $15.40 an hour, compared with $22.50 at 7-Eleven, $21.40 at ParknShop, $20.50 at Maxim's and $20.40 at Wellcome.

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The federation's organising secretary, Chan King-chi, said: 'McDonald's has no grounds to raise its prices when the economy is so bad. It would be reasonable only if they increase the wages for the low-rank employees.

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