KMB and LWB announce Wage Review Plan 2020
KMB and LWB announced today (9 July 2020) a pay freeze for all employees this year, while the arrangement of salary increment points remains unchanged. However, in view of the epidemic situation, the company will issue a one-time ex-gratia payment of $2,000 to all non-management level employees.
Both KMB and LWB are facing unprecedented challenges. The COVID-19 has caused a significant ridership drop. Coupled with a number of anti-epidemic measures such as the prohibition of group gatherings and travel restrictions, it is expected that the companies’ ridership and revenue will not return to pre-epidemic levels in the near future. In addition, the phased opening of the Shatin-Central Link and the 20% fare reduction of railway launched in July have further dealt a blow to the bus industry. Furthermore, the applications for fare increase submitted by KMB and LWB in 2018 have been withheld by the Government. Amid the volatility of its business condition, Transport International Holdings Limited, the parent company of KMB and LWB, issued a profit warning in May 2020. Having considered the above factors and the employment market, as well as the decision of the government civil service pay review, the companies have drawn up a wage review plan for this year as such.
The management teams of KMB and LWB have actively communicated with representatives of the Motor Transport Workers General Union K.M.B. Branch and L.W.B. Branch, and the Kowloon Motor Bus Workers General Union and its Long Win Bus Branch on the pay review. The companies thank all employees for their understanding of the companies in the face of a difficult business environment. The companies are committed to providing a stable employment environment. We look forward to working together with our staff members and continuing to provide passengers with safe, reliable and quality services.