The MTR Corporation and the KCRC announced a voluntary redundancy package yesterday for non-frontline staff in a bid to minimise job losses caused by the merger of the two railway operations.
The corporations would not estimate how many of their 3,600 non-frontline staff - ranging from clerks to managers - would apply for the scheme. But unions expected the response from staff would be enthusiastic, especially KCRC workers who were considered at greater risk of losing their jobs given a spate of scandals in recent years including the East Rail rolling stock blunder and last year's management crisis.
The merger would result in an overlapping of 600 to 750 positions, the government said last year. Although developments in railway operations and properties are expected to create 1,300 jobs two to three years after the merger, the new posts will not necessarily match those that were lost.
A council member of the Employers Federation, Brian Renwick, said the packages were 'more than fair' although he said few companies had introduced redundancy packages in recent years due to the economic revival.
'Instead of redundancy most firms are talking about pay rises these days to retain talent in light of an increasing turnover rate.'
But KCRC Workers Union chairman Ko Pak-kwan said up to half of the non-frontline staff may apply for the scheme, especially the more senior ones who were close to retirement.
