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HSBC move may set trend
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From South China Morning Post March 14
HSBC yesterday predicted other businesses would follow its example as it announced the transfer of hundreds of jobs from Hong Kong to Guangzhou.
Back-office staff earn 40 per cent less in Guangzhou and, in a document handed to employees yesterday, HSBC predicted the relocation signalled a trend other companies would follow.
"While the bank is taking a lead, we believe that more and more Hong Kong companies will undertake similar migration exercises for processing roles," the bank said.
A banking union leader last night said he believed other banks would follow suit because they could virtually hire two employees in Guangzhou for the price of one in Hong Kong.
Employees affected by the transfers would be asked to accept retraining and relocation to new jobs in Hong Kong where possible, HSBC said. It would not reveal how many people would be laid off, saying only: “Redundancy will always be our last resort.”
The move from Hong Kong to Guangzhou will begin next month with the transfer of card operations. A second wave of jobs in the Network Services Centre department will be transferred in September.
The plan assumes job losses of about 280 employees--about two per cent of the bank's 14,000 employees.
After days of speculation, the 1,200 employees affected were officially briefed by management yesterday afternoon.
It is not clear how many of those will be involved in the transfer to Guangzhou.
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