High-end menswear retailer Trinity, part of The Fung Group, is shutting down its final garment production line in Hong Kong.
The 182 staff members working at the production line will be made redundant this week.
Trinity says the move is part of the ongoing optimisation of its supply chain, in light of the challenging economic and retail environment in Greater China.
It says it has provided the affected staff members with a package that exceeds the standard compensation required by government regulations.
Hong Kong Confederation of Trade Unions president Cheung Lai Ha says she believes the action has been timed to save money on holiday compensation, which in this case would have amounted to about HK$1 million (US$128,900).
Cheung says the decision to close the final production line in Hong Kong is not a surprise because the company has well- developed production lines in China, where salaries are lower than Hong Kong.