Hong Kong Post Faces Financial Crisis, May Cut Mail Delivery and Close Post Offices
AM730 · 3 SOURCESabout 1 hour ago3 MIN
Summary
Hong Kong Post is implementing significant workforce and service adjustments as it battles prolonged financial difficulties. Starting September 2024, approximately 30 postal workers and mail carriers completing their probation will not receive permanent employment offers. Instead, they will be renewed under civil servant contract terms for two years. The new arrangement affects about 200 probationary staff in total, though they will retain their civil servant status and benefits during this period.
Key Points
- Hong Kong Post has recorded losses for eight consecutive years and recently applied to the Legislative Council for HK$4.6 billion to renovate the airmail centre and fund three years of operations .
- Postmaster General Dai Shuk-yi explained on an RTHK radio programme that postal volume continues to decline, making it impossible to offer permanent positions to newly completed probationary staff .
- Affected staff—approximately 200 postal workers and mail carriers on probationary terms—will receive two-year civil servant contract renewals while maintaining their benefits and civil servant status .
- The Post is studying whether to reduce mail delivery from the current five days per week, potentially aligning with practices in other countries and regions .
- Service adjustments under consideration include closing individual post offices, shortening business hours, and reducing operating days across Hong Kong's over 100 post offices .
- To increase revenue, Hong Kong Post is partnering with multiple e-commerce platforms, targeting emerging markets in Belt and Road countries, ASEAN nations, and the Middle East, and developing themed post offices and cultural products .
- The Financial Secretary has indicated the government will review whether the self-financing operational model remains appropriate, with preliminary recommendations expected by 2027 .
- Dai emphasised that the Post maintains a completely open attitude toward future institutional structures, including potential transformation into a public corporation or introducing corporate partnerships .
Why It Matters
These measures signal a fundamental transformation of Hong Kong's postal service, affecting not only hundreds of employees but also postal service accessibility across the city. The government will need to balance cost-cutting imperatives with maintaining essential public services, particularly for residents in areas served by smaller post offices.
These measures signal a fundamental transformation of Hong Kong's postal service, affecting not only hundreds of employees but also postal service accessibility across the city. The government will need to balance cost-cutting imperatives with maintaining essential public services, particularly for residents in areas served by smaller post offices.