British Airways could be sued over wages and recognition by Hong Kong union

A union representing the Hong Kong cabin crew of British Airways (BA) is threatening to sue the airline in the UK. The union said legal action will be taken if talks with BA scheduled this month, over pay rises and union recognition, fail to materialise.

The union which goes by the name, BA Hong Kong International Cabin Crew Association, revealed that majority of the airline's crew has not been given a pay rise since 1998. Carol Ng Man-yee, general secretary at the union, said they were serious about taking the airline to court for alleged discrimination. "We have already sought legal advice and there is a huge chance we will win. We are not afraid," she added.The union said BA's Hong Kong-based crew were being discriminated against crews of other countries such as those in the UK, Japan and India, where the crews were given pay rises over the years. Ng Man-yee said the union had pressed the airline over the issue several times and in 2015 it had even demanded a 7% pay rise, according to the South China Morning Post.

Ng Man-yee said in response the management had said that their packages were too good. "But their packages are good as well. Why are they getting raises?" she argued.

A British Airways spokesman said: "We have carried out research that indicates that our cabin crew in Hong Kong receive a generous package that is above the market rate. Our permanent members of crew received an increase in pay earlier this year and are also entitled to a number of flying allowances the value of which has been increased over the years."

BA has crew strength of 100 in Hong Kong, of which 50 are permanent staff and the remaining contract staff. While the permanent staff is being paid more than HK$30,000 (£2,683, €3405, $3,862) per month, including flying allowances, the contract employees are paid about HK$20,000 including allowances, of which HK$5,840 is the monthly basic salary.

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HSBC reshuffles investment banking arm in a bid to cut costs and make business 'more agile'

HSBC is understood to be in the process of reorganising its banking operations worldwide, in a bid to cut costs and ensure the business is "more agile".

In June last year, the FTSE 100-listed lender unveiled plans to reduce the size of its investment banking division by a third and reduce its global workforce by approximately 25% in an attempt to boost profitability.

According to an internal memo seen by Reuters, the bank is expected to cut dozens of senior jobs in its investment banking division, although it did not specify how many jobs would be slashed as part of the reshuffle.

Robin Phillips and Matthew Westerman, the joint chiefs of HSBC's global banking, said the changes will include establishing new corporate, financials and multinationals banking divisions, which will be headed by Philippe Henry.

"Our new structure will deliver the best outcome for our clients by bringing our country, sector and product teams closer together – and improve returns for our shareholders by improving our profitability and generating efficiencies," said Westerman and Phillips.

"The environment around us is changing, and we must adapt to ensure that we use our competitive strengths."

Westerman, who started at HSBC last month after leaving Goldman Sachs in February following a 16-year spell at the US bank, is just one of the high-profile figures involved in the reshuffle, which saw 15 senior bankers being let go earlier this month.

Last week, the lender hired Andre Cronje, the former chief operating officer at UBS investment bank, to cover the same role within HSBC' Global Banking and Markets branch. Meanwhile, HSBC confirmed Patrick George has been promoted to head of global markets for EMEA, a role he will take over on 1 July.

George will replace Niall Cameron, who will be moving on to cover the newly created role of head of corporate and institutional digital.

In the first quarter, HSBC's Global Banking and Markets division saw pre-tax profit plunge 30% year-on-year to $2.12bn (£1.46bn, €1.87bn).