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One hundred Hongkong Telecom staff who refused a pay deal linking bonuses to profits have been dismissed.

 And a union boss warned more jobs would be shed as a result of the price war among phone companies for mobile phone and IDD calls.

 A Hongkong Telecom spokesman said: 'Foreseeing cut-throat competition after the deregulation of the telecommunications market beginning this year, we transformed our cost structure.

 'Our chief executive Mr [Linus] Cheung had pledged there would be no sackings before 2000. But if someone doesn't want to stay on after numerous consultations, we have no choice.'  The dismissed staff are required to work until February 4 rather than being given payment in lieu of notice and will be compensated according to the Labour Ordinance.

 General Secretary of Hong Kong Telecom Employees Union Fan Kwok-fai said more jobs would be lost as the price war took its toll.

 Major international direct dial operators are offering bargain rates for popular destinations and a price war on mobile phone monthly subscriptions has intensified.

  New World Telephone announced further price cuts in the IDD tariffs war.

 Calls to the US and Canada will be charged at 48 cents per minute between 1am and 7am. Australia will cost 98 cents. Calls made between 9am to 9pm will be charged at $2.60 and $4.40 respectively.

 Mr Fan said about 250 paging staff at New World Telephone feared they would be sacked before the Lunar New Year.

 But a spokeswoman, Gladys Cheng Kit-yan, said 10 part-time operators had been laid off in the past two months, but it was too early to say if more lay-offs were needed.



Phone staff axed over bonus deal