Workers at Hong Kong's busiest tunnel won a victory against proposed pay cuts and job losses. Every day 118,000 vehicles pass through the Cross-Harbour Tunnel which is operated by a private company under a two-year contract tendered by the government. The contractor made an offer to the Transport Department to operate the tunnel at reduced costs under a new contract commencing on September 1, 2002. The new plan involved workforce reductions and wage cuts. The Hong Kong Tollways Employees Association opposed the plan and condemned the 'lowest-bid' system for government tenders, as this invariably leads to pressure to cut labour costs. A signature campaign and preparations for industrial action forced the Transport Department and the contractor to revise the new contract so that no wage cuts or dismissals will be imposed over the next two years. However, the union faces a new challenge after this contract expires, since the government is planning to privatize the tunnel.