KMB, unions reach 3.5pc pay-rise deal in late-night talks

A threat of industrial action by the largest bus operator's employees has dissolved after KMB reached a pay-rise deal with unions late last night after eight hours of negotiations.

Chung Kin-wah, who represents KMB staff in the Motor Transport Workers General Union, said last night that Kowloon Motor Bus had agreed to a 3.5 per cent pay rise. Earlier, more than 100 Kowloon Motor Bus drivers gathered, amid storm clouds over Hong Kong, and staged a sit-in outside KMB headquarters in Lai Chi Kok with the intention of staying overnight after pay talks broke down yesterday.

The drivers had also threatened to hold a slow-drive protest or go on strike if their demands for a 4.5 per cent salary increase were rejected. Mr Chung said most of its members accepted the 3.5 per cent rise, or no less than HK$280 for 1,600 contract bus drivers, offered by KMB.

'The plan to stage the sit-in [last night] and possible industrial action in the future is now scrapped. There is no point in bringing disturbances to the public now,' Mr Chung said.

He said the firm had also promised to review low pay rates in its engineering section.

Mr Chung said employees had initially lowered pay-rise demands from 7.5 per cent to 4.5 per cent.