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Bosses 'keep down increases'

Catherine Ng

Employers were yesterday accused of trying to force down pay rises in the coming year.

The Employers' Federation of Hong Kong came under attack by unionist legislators in a public forum for its announcement last month of a recommended increase of six per cent.

The average inflation rate in the last financial year was 7.93 per cent.

Legislators and unionists Lee Cheuk-yan and Chan Yuen-han said the federation aimed to cut workers' salaries.

Mr Lee, of the Confederation of Trade Unions, said: 'Now there is a danger of a less than six per cent rise. Any studies done by consultancies or employer groups in future must conclude with a lower increment suggestion because of this collective move to force down salaries.' He said increases must take into account inflation as well as the economic environment.

But speaking for the federation, May Chow Mee-yee said the study was only an indicator for the federation's internal advice, not a final suggestion.

She said the federation would continue the study and reach a conclusion by the end of the year. Workers had enjoyed bigger increases in the 1980s and should accept a lower increment this year when the economy was at a low ebb.

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