Economic slump : Hongkong PCCW plans to lay off staff

[DerekLeung]

PCCW plans to lay off staff
Posted: 04 February 2009 1540 hrs

HONG KONG : Hong Kong telecoms giant PCCW said Wednesday that it plans to lay off some workers as part of cost-cutting measures to cope with slowing business growth.

In a statement, the company said the cuts were "part of our normal daily business operation," and that they would not be across-the-board.

PCCW did not specify how many jobs might go, although a trade union warned of up to 600 staff posts being at risk, some five percent of the workforce.

"It is clear that the global economy has slowed down substantially and the Hong Kong economy is also slowing," PCCW said. "This is a prudent reaction to the reality in the market."

But the statement said it would continue to recruit new staff to the parts of its business that are growing.

The firm said staff numbers had grown by 40 percent to 17,000 between 2004 and last year as its business expanded.

The PCCW Employees General Union told reporters Wednesday that it was told by company sources of plans to cut costs by 30 percent and that it might lead to 600 layoffs.

"We are very frustrated with the company's decision. It should not cut jobs at bad times like this. We may hold a staff meeting to discuss if we will take any action," Terry Ip, a union spokesman, told AFP.

The news was announced just before an extraordinary general meeting later Wednesday, when shareholders will vote on a controversial bid by its chairman Richard Li and his partner China Netcom to take the company private.

- AFP /ls

 

[DerekLeung]

HK regulator probes PCCW privatisation vote
Posted: 05 February 2009 1309 hrs

HONG KONG: Hong Kong's financial watchdog said Thursday it was investigating a vote by shareholders of telecom giant PCCW approving a controversial bid to take the company private.

The Securities and Futures Commission said it had seized voting records from Wednesday's meeting and was aware of allegations of vote-rigging.

SFC officers left the venue of the meeting late Wednesday armed with boxes of voting documents.

"The SFC can confirm our staff were present at the PCCW meeting to monitor the voting process," a spokesman for the regulator told AFP.

"The SFC has taken possession of the voting records and will be making further inquiries. We do not have other comments to make at this stage."

The privatisation deal was accepted by holders of more than 75 per cent of the total number of shares represented at the meeting following an often rowdy six hours of debate.

But it was secured against the background of vote-rigging allegations by prominent shareholder activist David Webb.

PCCW chairman Richard Li and state-owned China Netcom, the two largest stakeholders in the company, offered to take it private by paying minority shareholders HK$4.50 (US$0.58) per share.

But minority shareholders considered the offer as far too low as the firm's share price had plunged 97 per cent from its peak since 2000, according to the South China Morning Post.

PCCW shares were valued at HK$4.17 Tuesday when trading was suspended ahead of Wednesday's meeting.

Webb said earlier this week he had received an anonymous tip-off claiming hundreds of Fortis Insurance sales agents were each offered one lot, or 1,000 shares, in PCCW in return for voting in favour of the buyout bid.

 

[DerekLeung]

Hundreds of PCCW contract workers go on half-day strike in HK
By Channel NewsAsia's Hong Kong Correspondent Leslie Tang | Posted:
11 February 2009 0022 hrs

Hundreds of PCCW contract workers go on half-day strike in HK

HONG KONG : Hong Kong telecoms giant PCCW was hit by a strike by some 400 contract staff on Tuesday. The workers were protesting what they say is a planned 10 to 30 per cent pay cut.

Hong Kong's biggest phone operator was in the spotlight again as hundreds of angry PCCW contract workers went on a half-day strike to vent their frustrations.

The protesters claim PCCW has decided to cut the budget of contracting companies by 10 per cent, translating to a 10 to 30 per cent pay cut for staff. There are also rumours that the company is planning to lay-off up to 600 staff.

Unionist lawmakers called on the telecoms giant to support its workers, especially during the current economic downturn.

Pan Pey-Chyou, legislator, Federation of Trade Union, said: "First of all, they have to stop cutting down the payment to the contracting companies. Secondly, they have to stop sacking people, to stop laying off people. Thirdly, they as a large enterprise in Hong Kong, should show concern and should have a heart to care for the workers."

Contract staff are determined to stand their ground. They have threatened more strikes in the days and weeks ahead if PCCW does not listen to their demands.

Organisers said the half-day strike should have minimal impact on repair and maintenance services.

However, in a statement, PCCW sought to correct what it called "serious misunderstanding" of its position, denying any decision had been made about cutting contract rates.

The statement said the company merely questioned whether a 10 per cent reduction in contract rates "might be possible" during discussions with sub-contractors.

Last week, PCCW was caught up in accusations of vote rigging for a controversial US$2 billion privatisation deal which was approved by shareholders.

A shareholder-rights activist had claimed that hundreds of Fortis Insurance sales agents had been offered company stock in return for promising to vote in favour of the deal.

Hong Kong's securities regulator is now scrutinising the voting records.

The privatisation deal still needs approval from the High Court, but it could be delayed because of the investigation. - CNA/ms