'As the rehiring by our operating suppliers is still going on, we expect the number of rehirings by the suppliers will further increase, therefore the ultimate number of staff affected is limited,' it said.

ParknShop said it had issued guidelines to its suppliers requiring them to comply strictly with the labour law when rehiring the staff and warned them that violation of the guidelines could lead to contract termination.

It also reiterated its decision to outsource its frontline services.

'Outsourcing is a common practice, especially in the retail industry including supermarkets and department stores,' ParknShop said.

Confirmation of the sackings came as a dozen former ParknShop workers and unionists, led by legislator Lee Cheuk-yan, held a protest at the Central headquarters of the supermarket chain's parent company, Hutchison Whampoa, before meeting the operator's management at the Labour Department.

One ex-worker said afterwards the supermarket had only agreed to consider the group's request for more compensation and to continue talks with suppliers over rehiring arrangements.

'While the supermarket may claim that 60 per cent of the affected workers have been rehired by its suppliers, it fails to mention that many of them actually have to accept a pay cut of up to 20 per cent as well as longer working hours for their new jobs,' he said.

The ex-worker said the group would wait until Monday night to discuss their next move after ParknShop had given its formal reply to their demands.