ParknShop staff complain of being made to move to new subsidiary

Some ParknShop employees have complained of being forced to agree to transfer to a new subsidiary, a move seen by unionists as tycoon Li Ka-shing's preparation to hive off the supermarket chain from his business empire.

The complaints came as Chief Secretary Carrie Lam Cheng Yuet-ngor sought to quell fears over Li's exit from Hong Kong and to quash speculation it was because of his discord with the Leung Chun-ying administration. Li had supported Leung's rival, Henry Tang Ying-yen, in last year's chief executive election.

The Confederation of Trade Unions yesterday said it had received about 10 complaints from ParknShop workers hired under A.S. Watson & Co.

The confederation said the workers had been asked to sign a consent letter to transfer to ParknShop (HK), a new company and subsidiary under A.S. Watson & Co.

Dated July 16, the letter asked the recipient to indicate his consent by signing and returning it by Thursday.

"This is a common trick by employers to sell off their responsibility to workers by setting up a new subsidiary and transferring current workers to it," said confederation chief executive Mung Siu-tat.

"After the new buyer takes over, what comes next will be a pay cut or a mass lay-off.