2pc pay cut but workers keep jobs with PCCW

At least 300 PCCW (telephone company) contract staff will take a two per cent pay cut - but retain their jobs - after contractors were forced to accept a five per cent discount on their services to the telecommunications giant.

Unionists hope the pay cut will set an example to PCCW and other companies that large layoffs can be avoided and compromises reached between workers and employers during financial difficulties.

Gordon Tsui Sai-cheung, deputy director of the Hong Kong Federation of Trade Unions’ rights and benefits committee, said PCCW had decided to cut its budget to its 50 contractors by five per cent. ‘Five per cent is already an improvement, as originally it had decided to slash the budget by 10 per cent,’ he said.

About 300 contract staff staged a half-day strike on Tuesday in protest at the proposed 10 per cent cut.

The union said the contractors employed 600 workers but only half of them would have their pay cut as those earning less than HK$6,000 a month would be spared.

One of the eight contractors, surnamed Lee, said he said he had been forced to cut wages because PCCW asked contractors to accept a five per cent discount for all projects starting from next month.

Workers who took part in the meeting said they accepted the pay cut reluctantly. One man who gave his name as Chan said: ‘As workers, we of course want zero pay cuts, but then the current economy is really difficult. We think we should all make some concessions.’

While contract staff now had job security, Mr Tsui said he was worried about the 17,000 workers directly employed by PCCW.

Legislators veto motion on collective bargaining

The introduction of legislation on workers’ collective bargaining rights could result in more labour disputes, Secretary for Labour and Welfare Matthew Cheung Kin-chung said yesterday.

His remarks came as a unionist lawmaker moved a Legislative Council motion urging the government to promote collective bargaining, which was supported by directly elected lawmakers but vetoed by their counterparts in functional constituencies.