As at December 2007, we had 1,919 employees in Hong Kong and 27,813 among our diverse joint ventures on the mainland. In Hong Kong, the employee turnover rate was 6.8% while an average of 4.5 sick-leave days were taken per employee in 2007.

Employee Welfare

It is a Towngas belief that a proper work-life balance is crucial to ensure work efficiency and effectiveness. We also endeavour to provide a healthy and comfortable working environment for our employees.

On top of our regular medical scheme, we helped employees in Hong Kong to purchase voluntary medical insurance for three consecutive years with a company subsidy. This voluntary medical insurance not only provides wider medical coverage for our employees, it also raises employee awareness of the need to look after their health and for health planning. Introducing this benefit as a lifestyle measure, employees can extend this scheme to enjoy ongoing medical coverage even if they leave the Company. During the year, we organised around 10 briefings to explain and promote this voluntary scheme with over 40% of our employees attending these briefings. As at December 2007, 2.4% of our employees had taken up coverage under this scheme.

During the year, we organised a number of work-life balance programmes for employees and their families through our Sports and Recreation Club. These programmes, often subsidised by the Company, include package tours, festive carnivals, various sport and leisure events, interest clubs, etc.

Internal Communications

We encourage open communication within our organisation seeking to maintain fairness and openness in the treatment of employees, customers and all stakeholders, through honest, open and timely dialogue, between the various parties concerned.

As a first step, our internal communication channels include regular meetings and briefings at every level supported by functions and events, information presentations as well as departmental newsletters. In addition, we set up communication channels to deal with labour and management issues. We have regular meetings with staff unions and committees to exchange ideas and to promote and maintain a healthy and contented organisation. In 2007, we held four consultative meetings to hear the views of employees on a variety of issues, including sustainability, before undertaking any significant changes that will affect their well-being and livelihood. Our strategies are also conveyed to employees through a Strategy Ambassadors Club. The Club now has 62 ambassadors, from frontline to managerial staff, who provide effective two-way communication platforms for the entire Company.

Equal Opportunities and Workplace Diversity

Ensuring fair treatment and total equality between both genders and races in terms of salary, promotions and compensation, we implemented a Towngas equal opportunities policy. We also seek to maintain a pleasant and harmonious work environment that is free from any discrimination related to religion, marital status, age, family responsibilities or any health disabilities or conditions. During the year, there were no reported incidents related to discrimination, restrictions of personal freedom, child labour, forced labour or corruption. We also follow this equal opportunity policy when appointing managers for joint ventures on the mainland. We apply gender-neutral principles, placing primary consideration on a candidate’s competence, without prejudice as to his or her origins or nationality.

Staff Development and Recognition

Towngas believes in continuous learning. We see ourselves as a dynamic learning organisation with a high degree of interaction and sharing between employees, leveraging the knowledge and experience acquired over the years. We also place every emphasis on skills training and personal development.

Hong Kong To cope with the rapid expansion and increasing complexity of our business, we developed and implemented the Towngas Leadership Competency (TLC) model in early 2007. This model integrates our human resources systems, enabling the development of a comprehensive development plan for individuals, whose talents will not only improve our overall capabilities but also build a leadership pipeline for the future.

At the end of 2007, we launched a talent acceleration development programme named TLC+. After detailed assessment including personality testing and a TLC 360° questionnaire, 25 participants (1.3% of the employees in Hong Kong) were selected to undergo an 18-month programme focusing on individual development needs. Candidates who meet the assessment criteria when they have completed the programme will enjoy a fast-tracked career, with the ability to move more quickly up the corporate ladder. Over 300 talented individuals are expected to complete this programme in the next five years.

Nurturing young talent, we operate a two-year Graduate Traineeship Scheme, a comprehensive training programme leading to a rewarding and challenging career with us for university graduates. The scheme aims to nurture talent and develop young people as future leaders of the Company. The programme has nurtured talent for many of our business sectors since it was established in 1982. In the past 25 years, around 100 Graduate Trainees have completed the programme and some 40% of our current executives are graduates of this initiative. In addition to this scheme, our Technical Training Centre operates a Gas Fitter Apprentice Training Scheme and a Trainee Network Fitter Training Scheme attracting young people to enter the gas industry. In the past 40 years, over 1,000 gas professionals have been trained through our various technical training schemes.

In recognition of the outstanding performance of our frontline, in addition to a series of internal awards, we organised the “Vote for Service Ambassador Campaign” from October to December 2007, inviting customers to vote for those who they feel are the most caring service ambassadors among our technicians and sales representatives. The event received a total of 30,452 votes from customers, providing excellent recognition and encouragement for our frontline.

Mainland China Our deeply entrenched Superior Quality Service (SQS) programme improves operational efficiencies and service quality for our operations on the mainland. During the year, a total of 3,104 mainland employees participated in the programme, completing 299 projects with tangible and intangible benefits worth RMB8.3 million. The fourth Quality Day for our mainland joint ventures was also held in Wuhan with 700 participants from various joint ventures, local government officials, customer representatives and the media. This enabled the sharing of quality experiences and success stories within the Company.

Employees on the mainland are keen to learn from international best practices and the latest industrial developments. Facilitating this learning process, we run a Training Institute in Jinan, Shandong. The Institute not only provides comprehensive training programmes to ensure that mainland employees are professionally qualified it also ensures that their practical skills meet international standards.

In addition to providing a gateway to new technologies and new products, the Institute also runs a technical consultancy service. Sharing the benefits of our management experience, marketing expertise and corporate culture, the Institute is able to help raise gas technology standards as well as introduce international best practices, making an essential contribution to the rapidly developing natural gas market in China.