Dock workers at Hongkong International Terminals (HIT), the port operator hit by a five-week strike over wages last year, could see their pay go up by 10.1 per cent from next month.
Base salaries will increase by 6 per cent, and the company would offer an additional 4.1 per cent in incentive income.
HIT said its contractors had also agreed to the pay rise. It quoted the contractors as saying that over 95 per cent of their workers had agreed to the deal.
But Chan Chiu-wai, of the Confederation of Trade Unions, which led last year's strike, said the offer was unacceptable as the "incentive income" was discretionary. The union called for a base pay rise of no less than 9.8 per cent. Last year's strike - involving more than 500 dockers at its peak - ended when they were offered a 9.8 per cent pay rise and improved working conditions.