Hong Kong CSR

Multi-stakeholders Dialogue - MTR

2006-04-19T17:46:00.000+08:00

The two rails (KCR and MTR) merger was the hottest topic last week. The hot topic this week is something else, which will be posted later. Now, the merger allows MTR to have ownership of KCR for 30 years. After that, it's another story. The government welcomes it and so do the customers - as we are expecting fares cut.

So, the Hong Kong public were well-informed on the merger by the news media. There's nothing we don't know. As shareholders of MTR, I am sure you have read the public announcement. And how about the MTR Club members? No worry! You should have received an email about the merger, just like I did. Okay...maybe some of you are asking what is MTR Club member? Well, it a membership for MTR riders or anyone who have an Octopus Card. You will be able to earn points and get free single journey ticket or get gifts like MTR Map Carpet.

Back to multi-stakeholders dialogue. As a member of the MTR Club, I received an email:

Dear XXXX,

You may have heard from the news that MTR Corporation has signed a Memorandum of Understanding with the Government setting out the terms of a proposed merger of the operations of the MTR Corporation and the Kowloon-Canton Railway Corporation.

We believe the proposed rail merger is a fair and balanced package that offers benefits to everyone including you, as a member of the travelling public of Hong Kong. If the proposed merger is approved, you will be the first to enjoy significant fare reductions, namely, a minimum 10% discount on adult Octopus fares for long distance journeys at or above HK$12 while medium distance travellers using adult Octopus will enjoy a minimum 5% fare reduction on journeys costing HK$8.5 to HK$11.9. Interchange arrangements will also become more convenient through the removal of interchange gates at Kowloon Tong, Mei Foo and Nam Cheong stations in phases.

To obtain more details of the proposed merger,please click here.

MTR Corporation

It's nice that MTR considers the MTR Club members as stakeholders and informing us. It was a surprise on how far MTR is going with CSR. But how come I never received email about their CSR Report. hmm...

When Mickey goes nasty!

2006-04-10T09:29:00.000+08:00

The news is over everywhere in Hong Kong local newspapers, making headlines.

Hong Kong Disneyland character performers say they are overworked and underpaid and want the theme park to improve their working environment, reported by SCMP.

The Disney's Staff Union say that many character performers suffered joint and muscle aches and pains due to lack of rest and poor working environment of more 12 hours a day. Also their salary, HKD 9,000, is lower than live shows performers. The character performers are asking for equitable pay.

In addition, the union is demanding the Hong Kong Labour Department to make joint and muscle aches and pains a notifiable occupational diseases under the Occupational Safety and Health Ordinance.

The theme park's Vice-President of Entertainmen, Laurie Jordan, said these are few exceptional cases and are not representative of the cast in general.

Source: Dennis Eng, 'Mickey and friends call for a better work environment', SCMP 10 April 2006.

Update: Wind Farm in Sai Kung

2006-03-24T10:06:00.000+08:00

Following my previous headlines on building a wind farm in Sai Kung on 20 February; today, the SCMP reported that CLP will assess the feasibility of the wind farm. However, the project will cost at least USD 300 million, much higher than the costs overseas experiences have shown (approximately USD 2 to 2.5 million per megawatt). The high cost is mainly due to the high piling costs in Hong Kong deep waters.

Following the news last month that Wind Prospect had approached CLP for possible participation in such a project, a CLP spokeswoman said the two companies would evaluate a proposal to erect 30 to 50 wind turbines of 3MW capacity each off the Ninepin, or Kwo Chau, Islands.

Wind power would be distributed via undersea cable to CLP's power grid serving Kowloon, the New Territories and Lantau, with potential coverage of about 73,500 families, or a population of 294,000, the CLP spokeswoman said....

The economic efficiency of wind power project varies. Turbines in Hong Kong will be estimated to work for about 20 to 22 percent of the time, compared to 40 percent on average in Tasmania, a leading consumer of wind and hydro energy.

Hong Kong's deep waters mean high piling costs, while support vessels would be needed to transport maintenance staff to the turbines, the engineer said.

Source: Denise Tsang and Cheung Chi-Fai, 'CLP to assess feasibility of wind farm', SCMP 24 March 2006.

People's: Putting staff at risk, fined

2006-03-05T22:26:00.000+08:00

The mobile phone network provider, People's, has been fined HKD 2,000 for poorly positioning workers' computer keyboards and monitors, which could cause repetitive strain injuries.

The SCMP reported today, People's was prosecuted under the Occupational Safety and Health Ordinance - the first time such a penalty has been imposed in Hong Kong. The government explained that People's was penalised after inspectors found the staff's workstations were unappropriate and have lots of room for improvement.

People's was not available for comment.

Last year, the Hong Kong Labour Department made 409 office-safety inspections, resulting in it issuing 144 warning letters and 24 notices telling employers to improve their work environments.

Source: "In legal first, firm fined $2,000 for exposing staff to risk of RSI", SCMP 5 March 2006.

Wind Farm in Sai Kung

2006-02-20T10:28:00.000+08:00

A UK renewable energy company is planning to build Hong Kong's first commercial wind farm off Sai Kung.

Reported today in SCMP, the company, Wind Prospect (Hong Kong), plans to build 50 massive wind turbines on the Ninepin islands, Kwo Chau Kwan To. The turbines can produce 4MW electricity each and will serve Tseung Kwan O area.

The company hopes to cooperate with CLP in the project. CLP has confirmed that Wind Prospect has approached them for possible cooperation.

Source: Dennis Tsang, "UK firms plans wind farm off Sai Kung," SCMP 20 February 2006.

CLP's Valentine Day's Present

2006-02-14T19:19:00.000+08:00

This afternoon, "Greenpeace presents CLP with withering flowers as products of air pollution" for Valentine Day. The protest is to call on CLP to end its reliance of coal power generation.

Greenpeace members protested outside CLP's head office in Kowloon. The organisation blames CLP for continuing use of coal to generate electricity and deteriorating the health of Hong Kong people. They hope CLP will not further delay plans for implementing renewable energy.

See news here.

Source: Greenpeace 2006, 'Greenpeace presents CLP with withering flowers as products of air pollution' Greenpeace 14 February.

Park 'n' Shop outsourcing fresh food counters - layoff workers

2006-02-07T12:31:00.000+08:00

One of the two largest supermarket chain, Park n Shop, laid off more workers yesterday as part of an outsourcing scheme for its fresh-food counter.

Some laid off workers may be transferred to other parts of the supermarket or be hired by the suppliers. However, trade union worries that workers who will be hire by the suppliers will face less wages, longer working hours, less job security and less benefits.

See here for more.

Stakeholders halt property development

2006-02-06T09:46:00.000+08:00

Last week, the Swire Properties was refused permission by a Town Planning Board to increase the plot ratio of two adjoining sites at western Mid-levels to at least nine times from 7.57 times now.

The company wants to build a $500 million, 58-storey residential development by combining two sites, one on Seymour Road and the other on Castle Steps.

About 3,000 people in the neighbourhood objected to the plan saying that the project will lead to traffic congestion, air pollution and blocked views. A representative of the neighbour hood (Seymour redevelopment concern group) said the developer is "too greedy" to care about residents' interests.

In response, Swire Properties expressed disappointment but the company will maintain an open communication channel with the neighbourhood.

Observers think that greater transparency and more channels for public comment will only jeopardise the project. A Hong Kong Polytechnic University's Professor said, "Tolerance of residents towards new developments gets smaller as the density of urban development gets higher. While developers will find it more difficult to satisfy people's demands, rising activism could slow the city's urban development."

Although there is no formal channel for residents to voice their opposition to plans submitted to the Buildings Department, industry observers said residents' opinions should not be ignored.

Other development projects that have been refused by Town Planning Board include, Hopewell Holding's Mega Tower hotel project in Wan Chai and Sun Hung Kai Properties to transform a gas and oil products transit depot in Ap Lei Chau into a 400 unit high-rise residential project.

Source: Foster Wong and Yvonne Liu, "People power delays projects: Greater transparency and more channels to complain mean developers ignore neighbours' objections at their peril", South China Morning Post 1 February 2006.

Fishermen demands compensation from Hong Kong Electric

2006-01-27T09:34:00.000+08:00

About 2,800 fishermen are demanding HK$1.4 billion compensation from Hong Kong Electric (HKEC) for the loss of fish stock and fishing gear caused by the laying of a natural gas pipeline in the seabed (approx. HK$500,000 compensation for each registered fishing-boat). The underwater pipeline runs from Shenzhen Ping Chau to HKEC's Lamma Island power station.

The fishermen claimed that they were never told the rocks would reach above the seabed until last October. The fishermen also found the rocks to cover the pipeline was in parts as tall as 3 meters above the seabed.

Supporting the fishermen's claim, WWF Hong Kong said that the Environmental Impact Assessment submitted by HKEC in 1998 did not disclose in writing that there would be stony hillocks. Representative of WWF also agreed that the construction has affected the marine life temporarily.

In response, HKEC replied that the construction is not finish and it is too early to decide the matter. The company added they have already given the government an ex-gratia allowance as a guarantee in case something like this happens. However, according to the fisherman, the fund only composed of HK$240,000.

Source: Mimi Lau, 'Fisherman demand $1.4b compensation', The Standard 26 January 2006.

Update: Hotel sacked staff, breaking promise

2006-01-25T11:23:00.000+08:00

Following the news on Mandarin Oriental firing 31 staff last week, here is the update.

The hotel company has refused to re-hire 20 hotel staff it laid off and FTU are threatening legal action against them.

The union accuses the hotel company of violating contracts signed with the sacked employees on December 28, ahead of the hotel's closure for renovation. The contracts stated that the employees will be assigned to other jobs within Jardine Group.

Representative of the hotel company denied that there were such contracts signed by both parties.

A protest will be staged today at Jardine House.

Source: Anita Lam, 'Mandarin accused of violating job contracts', SCMP 25 January 2006.

Giordano Sweatshops!?

2006-01-23T09:53:00.000+08:00

This news has been on the web for a while but no local newspapers have reported it. On 10 December 2005, the Students & Scholars Against Corporate Misbehaviour (SACOM) put out a press release accusing a local brand, Giordano, of failing its CSR. The report titled, "'World Without Strangers' That Excluded Workers" cover four factories that Giordano source from and one factory that is directly owned by Giordano and found labour law violations in all factories, reflecting insufficient monitoring by the company.

SACOM's representative, Vivien Yau said,

"The Ethical Sourcing Code of Giordano falls far behind standard and is not actualised to the factory level. When their staff visit the factories, they focus on product qualities rather working conditions. If Giordano is serious about building a 'World Without Strangers', they should start from their own operations, ensuring common and reasonable working conditions in both the factories they owned and the outsource factories."

In addition, SACOM has sent a letter to Giordano's CEO and Chair, Mr Lau, annd request the following:

Ensure the labour law are respected and implemented
Strengthen the implementation of Giordano's code on workers' rights, etc.
Increase transparency in CSR
Raise order prices to truly reflect labour costs
Make guideline on procedures of cutting orders

You can read the report here in Chinese.

Corporates urge government to improve planning in Victoria Harbour

2006-01-23T09:29:00.000+08:00

A group of leading corporate executives is hoping to meet with Chief Executive, Donal Tsang, after Chinese New Year to raise their concerns over developments along the harbour front.

The executive committee member of the coalition, Mr Paul Zimmerman, said,

"Their message is to ask the government to protect our harbour, to have some good planning and to get somebody to be in change of the harbour. The meeting will not be about the development of a particular site."

The coalition's main concern is the lack of long-term vision for the design of the harbour and harbourfront districts. They are also unhappy with the lack of coordination between 17 governmet departments involved in harbour developments.

The members of the coalition are: HSBC, Standard Chartered Bank, Jardine Matheson, the Swire Group, Sun Hung Kai Properties, Wharf (Holdings), Citic Pacific, the Kadoorie Group, the Kerry Group, BNP Paribas and the Lai Sun Group.

Source: Chloe Lai, 'Tycoons want discussions with Tsang to boost harbour planning', SCMP 23 January 2006.

KCRC: More problems coming out

2006-01-21T12:29:00.000+08:00

The KCRC train faults seem to be never ending at this moment. 19 more components of East Rail trains have been found with cracks yesterday. This bring a total of 233 defective components.

The KCRC management and frontline staff under the microscope everyday. The frontline staff are facing enormous pressure to check the problems and at the same time to maintain a reliable service and safety.

Source: Felix Chan, 'Inspections find 19 more train faults', SCMP 21 January 2006.

Hotel sacked staff, breaking promise

2006-01-21T12:09:00.000+08:00

Today's SCMP reported that the Mandarin Oriental Hotel has sacked 31 staff as a result of its closure for renovations.

According to the Federation of Trade Unions (FTU), sacked hotel staff has asked for help, after the hotel broke their promise of not make any redundancies during the renovation. FTU representative organised a protest outside the hotel company office yesterday and met with the hotel executives.

The hotel has now promised to consider reinstating the staff positions or offer them jobs at other organisations under the company group. The hotel will also cooperate with the Labour Department to help workers and no more redundancies were planned.

The hotel is owned by the Jardine Group and is under an eight months renovation.

Source: Anita Lam, 'Mandarin has sacked 31 staff, union claims', SCMP 21 January 2006.

Hong Kong CSR

2006-01-21T12:01:00.000+08:00

Welcome to Hong Kong CSR Blog!

This blog will put up any news, articles and reports on CSR issues happening in Hong Kong.

To cut it short...let's begin.