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Cafe de Coral backs down in pay battle

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Fast-food chain Cafe de Coral ditched a plan to deprive staff of paid meal times, heading off a major boycott of its restaurants.

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Trade unions hailed yesterday's turnaround as a victory after weeks of protests and pledged to continue monitoring other enterprises.

The fast-food giant had originally offered to raise hourly pay for its 3,000 frontline staff in line with the implementation of the minimum wage law, but it cancelled paid lunch breaks, resulting in lower pay in some cases.

Despite later promising that no wages would be reduced as a result, it came under intense pressure from unions and internet users over the week, bashing what opponents of the move said was the exploitation of 'legal loopholes'.

The company said it took the decision to drop the plan to 'alleviate public doubt' and 'for the purpose of social harmony'.

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'Although acceptance of such an offer has been duly signed off by most of the employees, the group acknowledges that certain organisations and members of the public have viewed the matter to the contrary,' a spokesman said. 'To alleviate public doubt and for the purpose of social harmony, the group decided the above-mentioned arrangement of excluding the meal time from the normal working hours is to be withdrawn with immediate effect.'

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