Maxim's to ax 100 as outlets shutter after double blow

At least 100 employees of catering giant Maxim's are facing the sack, an industry unionist says, as the government is set to give details of an employment support scheme on Tuesday.

Maxim's Group, one of the biggest catering chains in Hong Kong, has closed a number of outlets amid the economic downturn brought by the pandemic.

The chain was also affected by the social unrest as it became the target of pro-democracy protesters after Annie Wu Shuk-ching, eldest daughter of Maxim's founder, publicly criticized the anti-fugitive bill movement.

Dozens of employees arrived at Maxim's headquarters in Cheung Sha Wan early yesterday, with a few admitting they were there to settle dismissal arrangements.

One employee said the company will compensate them with two months' salary, including a month's pay in lieu of notice.

Another said sarcastically: "I am very happy, I can finally take a rest during the pandemic."

She added: "My kids have grown up already. Working at Maxim's for so long has given me numerous aches all over my body, so I am grateful that the company fired me."

Kwok Wang-hing, head of Eating Establishment Employees General Union, said 10 employees have sought its help. "They wanted to keep their jobs, but Maxim's has fully compensated the employees according to labor laws, and laying off employees is company policy so our hands are tied."

Kwok added: "We heard that more than 100 are being laid off since the company has closed many of its outlets after their leases expired."

The catering giant has over 20,000 employees, according to Kwok. The workers being dismissed are mainly from its Chinese restaurants.

"Most of them have worked for the company for around seven to eight years," he said.

The chain has not replied to The Standard's inquiry as of press time.

According to the Food and Environmental Hygiene Department, Maxim's has 388 catering outlets in Hong Kong, including 151 general restaurants and 237 licensed bakeries and light refreshment eateries.

The government's anti-epidemic fund is providing HK$200,000 for license holders of general restaurants and HK$80,000 for bakeries and light refreshment eateries. If the group applies for the relief, it will receive at least HK$30 million for all its general restaurants and nearly HK$20 million for its light refreshment eateries and bakeries.

Meanwhile, Secretary for Labour and Welfare Law Chi-kwong told Sing Tao Daily, sister paper of The Standard, the salary subsidy scheme's effectiveness will be reviewed based on the latest unemployment rates.

"I believe the policy will affect employers' mindset after it is announced because they can expect to receive the subsidy in June," Law said. "If the unemployment rate this month and next month increases at the same rate as last month, or is lower, this will indicate the policy is having the 'expected effect.' "

michael.shum@singtaonewscorp.com