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McDonald's Franchisee Found Guilty For 'Very Serious' Safety Violations In Peru

Amit Nag

Mcdonald's Corp’s (NYSE: MCD) Latin America franchisee Arcos Dorados Holding Inc (NYSE: ARCO) could face a fine of $254,000 for violating local safety and health laws in Peru, according to Reuters.

What Happened

Arcos Dorados was found guilty of six “very serious” violations of local safety and health laws after the death of two workers in a restaurant kitchen.

The regulatory body called National Superintendency of Labor Inspection or Superintendencia Nacional de Fiscalización Laboral (SUNAFIL) proposed a fine of $254,000 on Arcos Dorados over the deaths.

Arcos Dorados, which operates the highest number of McDonald's restaurants in Latin America, including 29 restaurants in Peru, has refused to make any comments on the matter.

Earlier this month, two teenage workers, Alexandra Porras (18) and Carlos Campo (19), were electrocuted by a loose cable at a McDonald’s restaurant in Lima.

The deaths raised questions about labor conditions at the franchise and spurred protests across Peru. The fast-food chain closed all its restaurants for two days, the Guardian reported.

What's Next

In response to the case, the Peru government has tightened the country's business health and safety regulations, said Labor Minister Sylvia Caceres at a news conference on Thursday.

“We have to discourage companies that violate labor standards,” said Caceres.

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