HONG KONG: The labor dispute between New World First Bus (NWFB) and its drivers has moved a step closer to resolution with the union backing off a major sticking point over salary demands. The union said it likely will abandon plans for a partial withdrawal of services next Friday, if management agrees to improve working conditions for contract staff.

The Hong Kong Confederation of Trade Unions affiliate NWFB Trade Union had demanded a 1.8 percent increase in employees' salaries. The company had refused to go higher than a 1.6 percent increase and a one-off bonus of HK$250 to each worker.

Negotiations between the two parties broke down on Wednesday. That was followed by a declaration by the union that 800 drivers and garage workers would stop work in protest on August 14th.

Union chairperson Chung Chung-fai said the union has agreed to set aside its salary demand but insisted the company must improve working conditions of contract employees, which comprise about 10 percent of the company's 2,000 employees.

"Contract employees are suppressed (by the company). Their service condition is much worse than the full-time," Chung said.

Contract staff are paid about HK$8,000 monthly, about HK$3,000 below what full-time salaried workers receive. Contract staff are not entitled to double pay, nor are they entitled to textbook grants for their children.

"We are waiting for a new proposal from the company. If it is sincere and suggests terms which we find acceptable, we will not insist on the 1.8-percent pay rise and will maintain normal work next Friday," Chung said.

The NWFB has made no new proposal, reiterating that its earlier offer is reasonable. A spokesperson said the company will improve benefits of employees according to conditions in the human resources market. It will meet the union again next week.

Meanwhile, the Watsons Water labor dispute was resolved Friday after the company accepted the views of its workers about the assignment of deliverymen on company trucks.

About 60 staff continued to picket outside the Tai Po headquarters for a third consecutive day Friday as discussions continued. The picket line was lifted once the agreement was reached.

Watsons agreed to scrap the practice of assigning five delivery workers per vehicle, which, the union said, cut workers' pay by HK$1,000 to HK$2,000 a month. Staff, in accepting the company proposal, withdrew an earlier demand for a commission increase to a standard 48 cents per bottle of water.

(HK Edition 08/08/2009 page4)