Hongkong Post ends permanent contracts for new hires amid mail volume decline
SCMP · 1 SOURCESabout 1 hour ago2 MIN
Summary
Hongkong Post announced it will cease offering permanent civil service contracts to new employees who pass probation from September onwards, switching to two-year contract terms instead. Postmaster General Leonia Tai Shuk-yiu said the change affects approximately 200 staff members as the organisation grapples with eight consecutive years of losses and a steep decline in mail volume . The postal service is also reviewing its delivery frequency and post office network as part of broader cost-saving measures.
Key Points
- New Hongkong Post employees passing probation from September will receive two-year civil service contracts instead of permanent positions
- About 200 employees will be affected by the contract change, with renewal dependent on operational needs
- Employees on the new contracts will still retain civil servant status and welfare benefits during the contract period
- Mail volume has plummeted from 1.24 billion items in 2018-19 to 611 million in 2024-25, a 51% decline
- Hongkong Post has posted losses for eight consecutive years since operating on a self-financing basis from 1995
- The Legislative Council approved a HK$4.6 billion grant to support operations over the next three years
Why It Matters
The contract change signals a fundamental shift in Hongkong Post's employment model as traditional postal services face structural decline amid digital communication trends. With the HK$4.6 billion government grant providing temporary financial relief, the organisation must develop sustainable long-term strategies to remain viable while maintaining essential postal infrastructure for Hong Kong residents.
The contract change signals a fundamental shift in Hongkong Post's employment model as traditional postal services face structural decline amid digital communication trends. With the HK$4.6 billion government grant providing temporary financial relief, the organisation must develop sustainable long-term strategies to remain viable while maintaining essential postal infrastructure for Hong Kong residents.