Quarterly English-language Bulletin of HKCTU

 

 

Telecom Giant PCCW Reaps Billion-dollar Profits,
Then Dismisses 858 Workers


Union Action June 2002

Only a week after the telecom giant, Pacific Century CyberWorks (PCCW), posted a net profit of HK$1.89 billion (US$242 million), 858 workers received dismissal letters as part of the company's ongoing "restructuring." Since PCCW took over Hong Kong Telecom in August 2000, over 1,800 workers have been dismissed, including 508 workers retrenched in December last year. More dismissals are expected in the coming years. In a letter to employees announcing the "compulsory redundancies", PCCW CEO Richard Li - among the wealthiest business tycoons in the territory - warned that: "Going forward, given the regulatory and market environment in which PCCW operates it is not possible to give an absolute assurance that there will be no further job losses."

Responding immediately to the sacking of the 858 workers on March 25, the Pacific Century CyberWorks (PCCW) Staff Association, an affiliate of HKCTU, organized a series of protest actions to stop the lay-offs. The union, representing over 1,800 members, held an Emergency General Meeting on March 25 at which industrial action was discussed. Two '327' (March 27) actions were undertaken: a 5 minute stop-work at 3:27PM to signify the hardship faced by workers and their sacrifice; and a mass sit-in at the PCCW office in Lai Chi Kok that night. During this protest action a resolution was passed to begin work-to-rule industrial action from April 1. This involved refusal of overtime.

The chair of the PCCW Staff Association, Terry Ip Ngok-fung, criticized senior management for earning the highest pay and bonuses while imposing job cuts. He also condemned the support expressed by government officials for the dismissal of 858 workers by PCCW - the largest single dismissal in recent years. Chief Secretary Donald Tsang Yam-kuen, the Commissioner for Labour, Pamela Tan Kam Mi-Wah, and Executive Councillor Henry Tang Ying-yen had all issued public statements defending PCCW management, arguing that corporate restructuring involving lay-offs are necessary. The union argued that the government was merely acting as a PR spokesperson for the company instead of defending the rights and well-being of those dismissed.


March 27, 2002: '327' Protest Action