A union representing New World First Bus drivers is going to stage a march next Friday after the bus company rejected yesterday their request for a 5 percent raise and stood firm to its decision to give a 3 percent pay increase instead.

According to the union's chairman Chung Chung-fai, the company has been rejecting their requests for a pay rise and better medical insurance for new staff citing financial difficulties over the past three months. But Chung said the company never showed them the relevant data.

He added that the government has already approved a five percent fare hike for bus services last month and it seems more unreasonable for the operator to deny their requests.

"With only a 3 percent salary increase, how can we survive the inflation?" he asked.

When the salary negotiation started in April, the union initially asked for a 6 to 7 percent salary increase.

The union is planning to march next Friday from Chater Garden to the headquarters of New World Development Co Ltd (one of the parent companies of New World First Bus) and the Transport Department.

The union is trying to set up a meeting with the Transport Department and Labour Department after the march.

"We hope the government can intervene in our dispute," Chung said. "If the next dialogue on June 17 with the company falls flat, we may resort to industrial actions."

A spokesman for New World First Bus said a three percent salary increase is the best that company can offer amid soaring fuel prices which have pushed up operating costs tremendously.

"We hope the staff can accept the offer, and stick with the company in such difficult time," the spokesman said.

A spokesman of the Transport Department said they and the Labour Department will follow the development of the issue.

(HK Edition 06/04/2008 page1)