CHINA TOPIX

03/19/2024 03:31:47 am

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Coca-Cola China Employees Get Extra Pay for Exposure to Polluted Air

As more and more foreign workers avoid China because of its air pollution problem, multinational companies are looking for ways to keep staff from leaving: they are offering their expatriate workers a generous hazard pay.

According to the Australian Financial Review, U.S. soft drinks giant Coca-Cola has disclosed it is giving its expatriate staff additional pay 15 percent of their base pay.

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Called "environmental hardship allowance," it compensates employees for health risks due to China's worsening air pollution.

Coca-Cola said the package became effective "recently" but would not mention the number of employees that it would benefit.

Japanese electronics manufacturer Panasonic unveiled a similar scheme in April, becoming among the first major global corporations to provide hazard pay to its employees.

Human resources experts said Coca-Cola's move showed that the company was finding it increasingly difficult to retain and hire new staff for its China unit.

Peter Arkell, managing director of recruitment company Swann Global for Asia, told the Asian Financial Review that more and more expatriates were not renewing their contracts because "they don't think China is a good place to bring up a family."

According to the business website Livemint.com, air pollution in China is up to 25 times below U.S. safety standards. The Asian Financial Review reported that only three of 74 Chinese cities passed the government's air quality test last year.

Rapid growth of industries and lax regulations are blamed for the rising air population.

Besides offering hazard pay, companies are also providing non­-wage benefits to retain staff, such as medical insurance, free air travel, and subsidies for air pollution masks and purifiers.

Some analysts see the 15 percent bonus that Coca-Cola offers as a hefty sum. This is especially because the current trend among employers is to cut back on other benefits like housing and school fees, according to Arkell.

But Livemint.com contrubutor Adam Minter said that for foreign workers who have experienced breathing China's polluted air, the amount may not be enough to get them to stay.

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