TNAG-2754-FCO40-3971-Business-matters-in-Hong-Kong-acquisition-of-Midland-Bank-by-1993 — Page 4

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MDLIAN 8069

HIB

UNCLASSIFIED

UNCLASSIFIED

FM MANILA

TO PRIORITY FCO

TELNO 354

OF 230744Z DECEMBER 93

INFO PRIORITY TREASURY, BANK OF ENGLAND

нив согл

1994

HONG KONG AND SHANGHAI BANKING CORPORATION

1.

THE HONGKONG BANK'S LOCAL OPERATIONS HAVE BEEN HIT BY A STRIKE OF SOME 190 OF THEIR STAFF. IT BEGAN WITHOUT WARNING IN THE AFTERNOON OF 22 DECEMBER. WHILE STILL ALLOWING CUSTOMERS THROUGH, PICKET LINES ARE PHYSICALLY PREVENTING ANY STAFF FROM ENTERING THE BANK'S PREMISES. SOME 80 STAFF REMAINED IN THE BANK OVERNIGHT AND ARE CONTINUING TO OPERATE AS BEST THEY CAN. THE BANK'S CHIEF EXECUTIVE WHO WAS NOT IN THE BANK WHEN THE STRIKE STARTED HAS SET UP A TEMPORARY HQ IN A NEARBY HOTEL.

2.SINCE THE UNION DID NOT GIVE NOTICE OF THE STRIKE AS IT IS REQUIRED TO DO UNDER THE LABOUR CODE THE STRIKE IS CONSIDERED ILLEGAL.

THE DEPARTMENT OF LABOUR AND EMPLOYMENT IS PREPARED TO ISSUE A BACK TO WORK ORDER, BUT FOR THE MOMENT THE BANK'S MANAGEMENT ARE LEAVING NEGOTIATIONS WITH THE UNION IN THE HANDS OF THEIR LAWYERS.

3. THE STRIKE HAS BEEN BROUGHT ABOUT BY THE UNION'S NON-ACCEPTANCE OF THE RESULTS OF A JOB EVALUATION SURVEY CARRIED OUT EARLIER THIS YEAR.

MONTGOMERY

YYYY

DISTRIBUTION

25

MAIN

23

SEAD

HKD

NEWS D

LEGAL ADVISERS//MR PARKER

ADDITIONAL

2

LEGAL ADVISERS//MS BROOKS PS/MR GOODLAD

MR MASEFIELD

MR HUM

HMT

NNNN

PAGE

1

B/ENG

UNCLASSIFIED