HSBC union threatens action over wage dispute

The HSBC staff union is contemplating action, due to differences with the management of the bank in coming to terms on the new collective agreement for 2006.

The HSBC union is demanding a 30 percent salary increment while the management is ready to give only a 25 percent increase.

Staff members say that despite other members in the Ceylon Bank Employee’s Union (CBEU), agreeing to a 25 percent salary increase under the collective agreement for all banks, HSBC staff cannot ‘afford’ to do so, because HSBC does not give extra allowances to them like the other banks.

“There are no other allowances for us such as the transport allowance and holiday allowance paid by Standard Chartered Bank or the ‘new holiday allowance’ introduced by Commercial Bank,” a HSBC staff member told The Sunday Times FT. He said that other banks in the CBEU can agree to a 25 percent salary increase because they get special allowances, but HSBC does not.

Ravi Jayasekara, Head of Human Resources, HSBC told The Sunday Times FT that the management has gone through several rounds of negotiations with the union and on October 11 HSBC made the final offer in settlement. “Our offer in salaries is very competitive and we are awaiting a response from the union,” he said.

He categorically said that HSBC is not introducing any more allowances for any category of staff. “We will appreciate if the staff and the union consider the total benefits accrued from being employed at HSBC when comparing with other banks,” Jayasekara added.

“The agreement of the management is that HSBC gives better opportunities than the other banks for the staff to get promoted, but that is subjective. The union has pointed out that HSBC profits are much higher than the other banks and with only 10 branches they can offer a 30 percent salary increase when they do not pay other allowances,” he explained.

Members of the HSBC union were unavailable for comment.