Nurturing aspirations ĦE Our employment policy and practices rank amongst the leading companies of Hong Kong. During the year staff turnover was again at a very low 1.9%, substantially less than the local average rate of 12%(1). This trend re-affirms our reputation as an employer of choice and reflects a workforce that embraces change as a driver for continuous improvement.
We believe HR practices are more than just wages and benefits. We seek to help employees fulfil career aspirations and give guidance on job expectations and the means to fulfil it. All employees, except for those engaged on temporary basis are hired on a performance-based remuneration policy. Our practices exceed those stipulated by law and are competitive with other large, reputable Hong Kong companies. Individual reviews are undertaken annually with employees to assess job performance and to guide them in further career opportunities.
As an equal opportunity employer we operate under a policy supported by a compliance framework that formalises non-discrimination against race, sex, creeds or economic status. Our responsibility to direct and indirect employees is in the spirit of the International Labour Organisation (ILO) which promotes a minimum wage and workplace dignity. As an example, as of 2005, we require from all our retail and operations contractors the contractual obligation and compliance procedures that ensure government-specified minimum wage for all workers employed on our sites.
We have yet to be a signatory to the UN Global Compact or SA8000, although our HR policy and practices generally align with the declarations against child labour, discrimination, sexual harassment, freedom of association, and the right to collective bargaining. Our policy on HIV/AIDS stipulates that the Corporation does not discriminate against infected employees and will continue to provide employment until their health impedes their ability to perform adequately.
We monitor our employment practices on a regular basis to ensure compliance to our internal practices, local regulations and international conventions. No prosecutions for violation of labour laws were incurred by the Corporation during 2005. Additionally, as a result of our efforts for best practice with site contractors and project partners, no labour related prosecutions were incurred by either during 2005.
Empowerment through dialogue ĦE Our employees are well informed of their rights and privileges. In addition to timely briefings and workshops, a formal mechanism for consultation and dialogue between staff and executive management is implemented through the Joint Consultative Committee (JCC) and the Staff Consultative Council (SCC), established in the 1980s.
The JCC provides the platform between the non-managerial staff and supervisors where work-related issues and matters of local common interests can be discussed and resolved. The SCC, comprising of elected JCC representatives, brings together in dialogue employee representation and senior management to address broader policy issues such as employment terms and conditions, corporate interests, and most recently, the rail merger. In 2004, a task force under the Human Resources Director was set up specifically to address and communicate with staff the impact of the merger on employees. A CEO's newsletter, regular briefings for management and a dedicated hotline keep general staff informed on a timely basis
of progress.
Complementing the formalised consultation processes, staff enjoy a wide choice of channels to communicate with and be heard by senior management, supervisors and each other. Such tools as the monthly MTR Express magazine, the company intranet, the corporate website, internal memos, divisional newsletters and, increasingly, cross-division group activities serve to promote dialogue and empower employees to share work issues and seek constructive solutions. Our CEO and senior executives pointedly meet informally and regularly with staff divisions to encourage dialogue and identify contentious issues well before crisis stage.
We also continue to expand ongoing efforts to reward staff for their contributions at the workplace. In addition to the established Work Improvement Team (WIT) programme, the annual Grand Awards for Outstanding Performance, the Staff Suggestion Scheme and the Staff Recognition Corner, new initiatives that focus on the broader horizons beyond workplace cost savings have been inaugurated. These include the Enterprising Spirit Staff Awards, the e-Pod (to promote revenue generation projects) and the Six Sigma programme (to provide the framework for continuous improvement). Our common goal with these and other established programmes is to encourage staff to express themselves through a variety of channels and to nurture and reward innovation and self-starters and to apply the ethic of continuous improvement at the workplace.
Training forms a substantial part of our strategy to help staff achieve their career aspirations. We mobilise substantial resources to facilitate and provide effective mechanisms for training that ensure a multi-skilled workforce, succession of our next generation of leaders and the fostering of the learning culture across the Company. In addition to workplace skills training, management courses, online education and training for redeployment, we sponsor employees to undertake tertiary degrees and attend relevant overseas courses. Most recently, we have collaborated with a local university to offer Hong Kong's first post-graduate diploma in Electrical Engineering for Railway Systems. In 2005, the average training was 5.7 days per individual staff, below last year's record of 7.26 man-days but in line with the general Hong Kong annual average of six man-days.
Progressive initiatives ĦE Recommendations tabled by The Lloyd's Rail Report highlighted the need to train staff further to manage crisis and communicate better with customers. The Corporate Issues Working Group was formed to action initiatives arising from not only the findings in the Report, but also from the staff surveys and the 2005 Work/Life Balance Study. While findings indicated a high level of job satisfaction and commitment to the Corporation, perceived work stress was an issue prompting attention of the Working Group. The well-received campaign to enhance staff awareness of the importance of work/life balance is ongoing from November 2005. Augmenting this programme is an intranet web page posting tips on health issues, seminars and corporate activities that address the more specific workplace issues. Additionally, professional counselling and a 24-hour hotline manned by qualified social workers are available for staff and their immediate family members for individual consultation. The focus on health has also promoted preventative measures in response to broader community health risks. In preparedness for communicable diseases such as the Avian Flu, seasonal flu vaccinations for all staff including part-time and temporary staff have been provided by the Company. Guidelines are also in place to ensure high standards of hygiene in workplaces, stations and trains including augmenting air control systems to circulate more fresh air and ensuring proper maintenance and cleaning of the ventilation systems. Railway operations are fully compliant to the Environmental Protection Department's Practice Note 'Managing Air Quality in Air-conditioned Public Transport Facilities - Railways' .
A related CSR initiative, volunteerism, commenced in late 2005 to encourage and empower all employees to "make a difference" in their own lives and that of the community. In addition to our ongoing Corporation Community Involvement Team (CCIT) programme, the "More Time Reaching Community" programme extends the spirit of volunteerism to a wider scope of community commitment. By staff suggestion, projects cover helping the disabled and elderly, environmental issues, sports and education. Staff-generated volunteer projects under this social awareness banner are facilitated and funded by the Corporation. In these early stages, nine projects for disadvantaged groups have already been successfully staged or are planned for 2006.
Code of Conduct ĦE In addition to formal training on business ethics, each employee is given the Code of Conduct manual and undergoes a mandatory introductory session on the Code. The Code of Conduct formalises our "no tolerance" policy and expresses the actions to be taken on such issues as bribery, corruption, conflict of interests, discrimination, ethical behaviour and relationships with customers and business clients. It enshrines our policy and directives in equal opportunity at the workplace. It also forms a cornerstone in certain stakeholder engagement practices as well as instilling ethics and company values at the workplace. All employees must demonstrate their compliance by re-signing the Code every other year.
Staff safety ĦE The formal safety policy for staff is managed by the Safety Committee and under direct supervision of the Board of Directors. In respect to employees, the policy encompasses a broad spectrum of issues relevant to workplace tasks, the environment and services. These issues are identified and monitored with recommended actions implemented and managed under the Integrated Management System.
Safety programmes are executed principally through the Safety Objectives which detail the areas and targets for where and how safety is to be managed across the organisation. The programmes engage relevant divisional and functional staff outlining specific goals to be achieved and profiles the team members to take the ownership role in achieving the objectives. Individual divisions also employ their own mechanisms such as the Property Division's safety manuals to monitor and control systems and the day to day safety operations on site. In 2005, the Six Sigma programme was introduced as a means to provide the framework for improvement of processes.
During the year we commissioned a consultancy study to examine our corporate safety management organisation and arrangements. The study was driven by the Corporation's widening scope of business. In response to the recommendations from the study, actions were formulated to enhance protection to our core business in Hong Kong and set a new safety strategy for growth businesses. Starting in February 2006, a newly formed Corporate Safety Committee will oversee corporate safety governance. The Committee will be supported by the existing Operations Safety Committee and three additional safety committees newly formed to cover China and International Business, Property and Railway Construction Projects respectively.
Our record for staff safety in 2005 has again performed well against targets with zero fatalities amongst staff and a low 0.77 loss-time injury frequency rate against the base 200,000 man-hours worked. The number of accidents amongst staff and contractors increased to 30 compared with 25 in 2004. The 2006 Safety Plan sets out to enhance the targets identified in 2005, focusing on the reduction of injuries and reported incidents amongst staff, passengers and contractors.
