With the economy picking up, unions say there is no need for a 3pc reduction
Civil service unions yesterday urged the government to halt the second phase of a pay cut next year, in view of the continued economic recovery and a slight rise in the private sector pay trend.
Despite a call on Monday by Secretary for Economic Services and Labour Stephen Ip Shu-kwan for employers to be more generous to their employees, the Civil Service Bureau said the 3 per cent pay cut would go ahead as planned under an agreement reached with unions last year.
Felix Cheung Kwok-biu, chairman of the Hong Kong Civil Servants General Union, said his union would demand officials halt the cut. Under a joint agreement formalised by legislation last year, the government reduced civil service pay by 3 per cent from January and the second stage will be carried out next year.
'Now, as the economy is picking up again, the government has proved that it can improve governance. As the private sector is giving pay rises to staff, we believe the remaining 3 per cent cut should not be carried out. Halting the cut would help stimulate the economy, and more spending by civil servants could help solve deflation,' Mr Cheung said.
He said his union would write to Chief Executive Tung Chee-hwa, Financial Secretary Henry Tang Ying-yen and the Civil Service Bureau next month to press the case. He said the government should show itself as a good employer.
