CMB 'to lose' over claims

Carrie Lee

CHINA Motor Bus (CMB) will lose, not save, by avoiding to pay the compensation which its redundant workers expect, an industrial relations academic warns.

The comment followed the claim by some of the 170 workers laid off by CMB that the action was taken to avoid giving severance and pension payments.

While most analysts agree that the dismissals will benefit the company, which is to lose 26 bus routes to City Bus, labour relations specialists believe there are better ways to make redundancies.

''When a company dismisses people, it should treat them well and give reasonable compensation,'' said University of Hong Kong lecturer in management studies Ng Sek-hong.

He said the bus operator should have discussed the redundancy and compensation with the employees' union before the dismissal was formally announced.

''The company, of course, does not want to spend a fortune on redundant workers,'' Mr Ng said.


''But it should have reached an agreement with its staff over the compensation which sounds reasonable to the public.

''The lack of an acceptable compensation package will drop the morale of drivers who will then strike or work with poor attitude.

''That will further worsen CMB's image and put passengers off.

''What is gained from avoiding a reasonable compensation will not make up for the losses.''