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To: Raymond Duray who wrote (22178)	8/6/2002 12:28:43 AM
From: TobagoJack	Respond to of 74559

Globalization, destruction of middle class, Asian values etc, all in one article: news.ft.com HSBC chief ranks Asia staff above UK workers By Charles Pretzlik, Banking Editor Published: August 5 2002 21:59 \| Last Updated: August 5 2002 21:59 The chief executive of HSBC on Monday launched a surprise attack on some of his bank's staff, suggesting that workers at its processing centres in India and China were better than those in UK. Sir Keith Whitson also potentially offended representatives of Hong Kong, saying there had been a rise in defaults there on credit card debts. Commenting on the Asian processing centre workers, Sir Keith said: "They're quicker at answering the phone, highly numerate and keen to come to work every day. Staff are hugely enthusiastic about their jobs, they dress well. A lot have degrees." HSBC employs some 5,000 people in its UK processing and call centres. "I wouldn't say in all cases the perform ance in the UK is inferior. The quality of work overseas is exceptionally high," Sir Keith said, announcing the group's interim results. Unifi, the union representing workers in the financial services industry, said staff in India were often better educated than their UK counterparts, who were paid £12,000-£15,000 ($18,750-$23,440). However, a spokeswoman said: "As far as we're concerned, workers in the UK are very good at their jobs." HSBC will employ 4,500 staff in processing centres in India and China by the end of the year. In India it has centres in Hyderabad, with another planned for Bangalore. In China it has one in Guangzhou and plans one in Malaysia next year. HSBC said provisions against credit cards rose by $66m to $103m in the first half of 2002, reflecting a higher level of personal bankruptcies as unemployment levels rose. However, Sir Keith said: "Hong Kong-Chinese used to be a bit above it [defaulting on credit card debts]." In what he described as a 'sick development', he said some "get as many cards as they can and emigrate". HSBC has organised focus groups of defaulters to try and better understand who they are. No pattern has emerged however, although Sir Keith said they were "smartarses who think they can get away with it." A spokeswoman for the Hong Kong Economic and Trade Office in London said: "I don't think it's something to do with Hong Kong-Chinese culture." Sir Keith's remarks came as he announced a 7 per cent drop in group pre-tax profits to $5.07bn for the six months to June 30. The bank said it supported moves by the International Accounting Standards Board to reflect the cost of share options in its profit and loss account. This would have cost the bank $127m in the first half, it said. Provisions for bad and doubtful debts rose 62 per cent to $715m. Pre-tax profits in Hong Kong fell from $2bn to $1.9bn and in the rest of Asia rose from $638m to $670m. In Europe, profits fell from $2.37bn to $2.12bn, and in North America from $599m to $652m. Sir John Bond, chairman, said he thought a stock market rebound was unlikely. "We continue to position HSBC for a subdued environment."