Take it or leave, Telecom warns
Hongkong Telecom made further concessions in its pay package yesterday and told staff who refused the new deal they should reconsider their future with the company.
The new plan offers the 12,000 workers a quarter of their month's bonus as long as the company registers growth in operating profit next year.
Unions quickly objected, prompting William Cheung Kam-hung, director of human resources, to say that staff who continued to refuse the new deal should 'reconsider whether they want to stay with the company'.
It was originally proposed that a minimum three per cent growth was needed to warrant a half-month bonus.
Chief executive Linus Cheung Wing-lam claimed the new proposal was 'a winning situation for the employees, the shareholders and Hong Kong's competitiveness'.
It was forwarded after more than two months' wrangling and 14 meetings with the Joint Staff Council - the only authorised channel recognised by the company.
'The benchmark for profit comparison would be lower if we record dissatisfactory results next year,' Linus Cheung said.
'The staff would then stand a better chance of getting a bonus the year after.' The proposal was supported by council members, whose membership is by invitation.
However, not all council representatives agreed with the new deal, according to co-ordinator Lai Man-wai.
Independent unions resisted the plan.
Fan Kwok-fai, of the Hongkong Telecom Employees Union, protested against 'the guaranteed loss of 75 per cent of the bonus which was not optional before'.
Cable & Wireless (HK) Ltd Staff Association treasurer Fung Ping-kwong said: 'It's only an arithmetic game, but it is definitely more difficult to garner staff support now.' Employees, in addition to receiving Hongkong Telecom shares equivalent to 10 per cent of their monthly salary, will be able to purchase shares in parent company Cable & Wireless at a 20 per cent discount.
The listed company was expected to dish out nearly $400 million worth of shares, exercisable by 2001, said Linus Cheung.
He said employees would receive a half-month bonus if profits grew by three to five per cent, one month if they were greater than five per cent and 1.5 months if they reached 12 per cent or more.
About 1,500 staff earning less than $10,000 a month would be unaffected by the variable bonus scheme.
The listed company guarantees no forced lay-offs or pay cuts before 2000, although Linus Cheung admitted 'there is a little bit of redundant staff'.
The unions will meet today to decide on their next move.
