BEIJING: Coca Cola is offering its employees in China a hefty 'environmental hardship allowance' as part of its efforts to attract and retain talent. There have been repeated industry reports about highly-qualified and experienced expat workers leaving China as they are unable to bear the high levels of air pollution.
The wage premium, which was introduced recently, is believed to be as high as 15% on the base salary of an employee. It is being described as a "mobility package" to attract quality personnel from other countries.
Coca Cola needs to attract a lot of talent for its new $100 million plant in Harbin city in China's Heilongjiang province. Work on the 200,000 sq m plant started last month. It will have nine production lines for both sparkling and still beverages, including Coca-Cola, Sprite, Fanta, Minute Maid and Ice Dew.
It is the second major foreign company to offer environmental allowance to its employees after Japan's Panasonic announced it last April.
China's pollution regulators said that only three out of 74 cities met minimum government standards last year.
More foreign companies are expected to offer compensation for pollution because this is being regarded as the biggest human resources challenge in China. A survey by the European Chamber of Commerce in China showed that its members regard pollution as a "business challenge" of a high order.
Many foreign companies are offering better medical insurance benefits, more paid trips home and subsidies for buying air filters. They have also established giant air purifiers in offices and are supplying breathing masks to employees.
