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Following is a question by the Dr Hon Raymond Ho and a reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, in the Legislative Council meeting today (March 8) :
Question:
It has been reported that the negotiation by the Kowloon-Canton Railway Corporation and the MTR Corporation Limited on their merger is close to reaching an agreement, but the two railway corporations have not yet explained the employment for employees of the two railway corporations following the merger. In this connection, will the Government inform this Council whether it knows if:
(a) the merger of the two railway corporations will greatly reduce the chance of further employment for their employees;
(b) compensation and bridging-over arrangements will be made for those employees who are made redundant as a result of the merger of the two railway corporations; and
(c) there are measures to prevent as far as possible the loss of talent of the two railway corporations following the merger?
Reply:
Madam President,
The negotiation on the merger of the two railway corporations is actively underway. The Environmental, Transport and Works Bureau and the Financial Services and the Treasury Bureau are negotiating with the MTR Corporation Limited (MTRCL) on the terms for the merger. We aim to conclude the negotiation and make an announcement as soon as possible.
Staff is an important asset which the management of the railway corporations should attach importance to and make the best of. I would emphasise that it is one of the major premises in our consideration of the possible merger that the prospect of future development of railway operation and the operational efficiency would be enhanced, the public at large and the minority shareholders of MTRCL could benefit from the merger, and the staff could also benefit from the business opportunities created as a result of the merger. It is one of the key parameters set by the Government for the merger that job security for frontline staff should be ensured at the time of the merger.
The two corporations advised that if the merger was to proceed, there would be a need for them to conduct detailed studies in staff arrangements for the future merged corporation. The scope of these studies would include the operating structure of the future merged corporation and other related matters on human resource arrangements. The two corporations have assured their staff that they would be consulted on merger-related matters affecting them. It is not the right time to comment or make any speculation on matters about retention, transfer or even lay off of staff because of the merger. One point that is clear to me is that the two corporations and the Government do understand the concerns of the staff, and communication with staff would continue and their views would be considered in deciding on the way forward for the merger.
We believe a merger of the two corporations would enable the two corporations to supplement their strengths, enhance the competitiveness of and create greater business opportunities for future railway operations. The two corporations indicated that since a number of railway projects are currently underway and would be completed in the coming years, there would continue to be a demand for staff positions in future. They also indicated that staff interests would be looked after in all circumstances and they would provide their staff with a satisfactory working environment and adequate training and development opportunities so as to retain and attract talents.
Ends/Wednesday, March 8, 2006
Issued at HKT 14:15
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