HONG KONG: Civil servants here have agreed to accept pay cuts of about 6%, rolling their salaries back to what they were in 1997 as part of a plan to cut public expenditure to close a gaping deficit, a minister said yesterday.
In this community which is already full of conflicts, full of finger-pointing, I believe we have set a good example and I believe this is something which should be applauded, said the secretary for civil service Joseph Wong.
Civil service unions and the government have agreed to two cuts of 3% each in January next year and January of 2005, a government spokeswoman later said.
The cuts would save HK$7bil (RM3.4bil) when fully implemented, Wong said, without giving any time frame.
The deal comes after months of bitter wrangling between the civil service and administration and follows a cut of up to 4.42% in October for the 178,000 workers. Reuters
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