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Aug. 8 - American fast food giant McDonald's has said it will next month boost salaries for more than 40 thousand full-time1 and part-time employees at its outlets2 in China by up to 56 percent, the Beijing Youth Daily reported.
This is the first ever big-margin pay increase of McDonalds's in China since it entered Chinese market 17 years ago. About 95 per cent of McDonald's Chinese staff will see a pay rise by an average of 30 percent, said Jeffrey Schwartz, CEO of McDonald's China. The remaining 5 per cent are already being "paid very well", Schwartz added. After the pay rise, the salaries of McDonald's Chinese employees in Beijing, for instance, will be 15 percent higher than the minimum wage level set by the Beijing municipal government. China has become the second largest market after Japan in the Asian-Pacific and Middle East regions, with its sales volume amounts to 2 percent of McDonalds's global sales. McDonald's is adding about 100 new stores in China per year and today has 815. According to Schwartz, prices of McDonalds's food will not go up much despite the massive pay increase and the rising costs of grain and milk all over the world. However, the American fast food giant registered in its fiscal3 second-quarter operating results this year a first-ever financial loss of 712 milllion dollars.
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