Burger King to force German franchisee Yi-Ko Holding to adjust pay to collective bargaining agreements in industry following report exposing poor hygiene and bad working conditions at some of its restaurants
May 12, 2014
– Burger King (NYSE:BKW) will force German franchisee Yi-Ko Holding to adjust pay to collective bargaining agreements in the industry following a report exposing poor hygiene and bad working conditions at some of its restaurants.
Yi-Ko Holding will bring its pay in line with that in the sector, Andreas Bork, the German chief of Burger King, told weekly Welt am Sonntag.
Yi-Ko Holding is Burger King's largest partner in Germany, operating 91 stores and employing about 3,000 people.
Bork said last week Burger King would appoint an external safety and standards authority such as TUeV to help it sort out the mess.
An undercover investigation shown by TV station RTL last week revealed that several Burger King outlets run by Yi-Ko Holding breach hygiene guidelines and relabel out-of-date food. In addition, workers at one Burger King restaurant were denied holiday and overtime pay.
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