Airport workers fear 27pc pay cuts

More than 200 baggage-handlers at Chek Lap Kok airport may have to take pay cuts of up to 27 per cent to keep their jobs with a new contractor.

Swire Engineering Services, which has held the baggage franchise since the airport opened in July 1998, will be replaced in January after being outbid by US-based Worldwide Flight Services Incorporation. The two firms are discussing the transfer of staff. However, in a recent briefing by Worldwide bosses, staff said they were told they could face pay cuts of up to 27 per cent.

Chan Po-choi, chairman of the Staff and Workers Union of Hong Kong and Kowloon Civil Airlines, an affiliated member of the Federation of Trade Unions, said most low-ranking staff would face a $2,800 monthly cut. 'The starting salary would be cut from $8,500 to $6,600, while an allowance of $1,000 would be abolished,' he said.

Most employees had not made up their minds whether to join the new company, although mid-rank supervisors had opted for a transfer, he said. 'The new contractor may think the lower ranks can be easily replaced,' Mr Chan said.

However, Worldwide Flight Services general manager Terence Boo said 27 per cent was a 'base' figure. Starting salaries would be linked to experience and skills attained either with Swire or with other companies. 'We can't be definite about how many people will be employed in what positions at what pay until our individual assessments and interviews with staff have been completed,' he said.

Authority spokesman Chris Donnolley said the issue was a matter between the new contractor and employees.

Swire was not available for comment.