Shui On Construction and Materials has reached consensus with staff to cut salaries by 3 per cent to 7 per cent in the next financial year, according to executive director Wilfred Wong Ying-wai.
The one-month bonus for the period will not be given out as part of its cost-cutting plan. But the pay-cut plan will not affect those with a monthly salary of HK$10,000 or less.
Mr Wong said 50 construction-site employees were laid off last Friday due to the economic conditions. Some of its surplus Hong Kong staff will be transferred to its China offices in Shanghai or Chongqing in the next few weeks.
He attributed the lay-off decision to the shrinking construction business in the market.
Shui On last November revealed that its directors would take a 10-per cent cut in basic salary and give up their year-end one-month bonus, following a more than 70-per cent drop in profit for the six months to September 30.
Mr Wong said more than 80 per cent of its staff agreed that the salary-cut plan was worth considering.