HSBC publishes its financial package proposal

by Franco Aloisio,

Karl Schembri

HSBC yesterday published a circular stating the wage increases to be given to employees in the three-year period between 1999 and 2001. The publication of this circular, which irked the trade unions, claimed that HSBC clerks could earn up to 27 per cent more in wages and bonuses, while the increases for managers could go up to 33 per cent over the three-year period.

The circular, signed by the HSBC head of human resources Stuart McLeod, said employees will be given increases depending on their performance, adding that it agreed with the Malta Union of Bank Employees (MUBE) that staff who receive a performance classification that is "below satisfactory" level are not guaranteed to receive the minimum financial awards. HSBC said the minimum and maximum increases over the three- year period differ between the "satisfactory" performers and the "outstanding" performers.

Good performers in the clerk section of HSBC, who are currently earning Lm4,589, would get an increase of Lm734 or 17.7 per cent, while outstanding performers would get Lm920 more or 27.2 per cent. In the managerial section, good performers stand to earn 16.5 per cent, and outstanding performers could get 33 per cent increases over three years. At present managers earn Lm6,587.

The bank emphasised that increases include company bonuses, and not cost of living adjustment (COLA) or statutory bonuses. However, the unions yesterday claimed the bank's financial packages included COLA and statutory bonuses.

Mr McLeod said the percentages proposed by HSBC should be compared to what the bank believes other financial institutions are offering, that is, 15 per cent over the three- year period. Mr McLeod told employees that in 2002 the bank would be introducing the "Let's Reward Success" scheme, which leads to increased financial rewards for workers.

Meanwhile, MUBE President William Portelli yesterday said the figures of the financial package published by the bank were manipulated. He said the Minister for Social Policy had offered to mediate between the unions and the bank.

Both the GWU and the MUBE said they were willing to suspend the directives if the director of labour or Dr Gonzi managed to call a meeting with the HSBC management. The unions ordered more industrial action yesterday: directives included a total ban on communications, the suspension of perform-ance management at HSBC, and a prohibition of vehicle use on bank business.

"HSBC gave a distorted and misleading picture throughout this dispute," GWU professionals and services secretary Karmenu Vella said. "They tried to undermine the unions and manipulate our claims in absolutely unethical ways," he said referring to the way the bank divulged the financial package that was still being negotiated with the unions."

"We are for change in work practices, but not just changes dictated by the employer," he said. MUBE secretary general Brian Decelis asked whether the HSBC was ready to offer the same package as negotiated with Bank of Valletta without changing any conditions of work in the agreement.

Referring to the HSBC press conference to which only journalists from the English-speaking newspapers were invited, he said it was sheer arrogance from the management's side to hand-pick a few journalists and exclude others.

"I never expected HSBC to do this," he said. The unions will be holding a meeting for all HSBC employees at the Phoenicia Hotel tomorrow. Unless a solution is reached by then the unions warned they will be issuing further directives.

Meanwhile, the General Workers' Union yesterday circulated a letter it had received last year from the International Federation of Commercial, Clerical, Professional and Technical Employees in which they union was warned of HSBC's record of trade union rights violations.

The federation (FIET) had written to the GWU on 5 May 1999 with regards to the negotiations that were being held between the government and HSBC over the sale of Mid-Med Bank.

The letter said: "Unfortunately, I have to inform you that HSBC is well known for its violations of trade union rights and of local labour standards around the world," the letter said. "A number of unions have experienced significant difficulties in their labour relations with the bank, for exampple in Korea, Indonesia and Argentina." Together with the letter, signed by FIET's general secretary, the federation enclosed an annual report from HSBC, information on the banks' actions against trade unions in Korea "as well as an action plan on mergers which was discussed recently among trade unionists at a Euro-FIET finance sector meeting".