Hong Kong Post Faces Reform Backlash Over Contract System Change
HK01 · 2 SOURCESabout 1 hour ago2 MIN
Summary
Hong Kong Post has announced a significant shift in employment policy, ending the practice of granting long-term positions to employees who complete their probation period. Approximately 260 postal workers who finish their trial period will now receive two-year contract renewals instead of permanent employment, with the first batch of about 30 staff affected from September 17. The decision comes as the postal service continues to struggle financially, having recorded losses for eight consecutive years despite receiving 4.6 billion Hong Kong dollars in government funding to sustain operations over the next three years.
Key Points
- Hong Kong Post will offer two-year contract renewals instead of long-term employment to staff completing probation, affecting roughly 260 employees across postal and counter services
- The first batch of approximately 30 workers must respond by September 3 whether they accept the new terms, with changes taking effect on September 17
- Economist Li Zhaobo described the contract change as merely a precursor, warning that reducing civil servant salaries is essential, stating "if civil servant wages aren't cut, it's a dead end"
- Postmaster General Daisy Tai Shuk-yiu, who also serves as the General Manager of the Postal Services Trading Fund at D5 rank, earns a monthly salary of 278,000 to 286,700 Hong Kong dollars
- DAB legislator Chi Kit-ling urged the post to leverage its city-wide network and international postal channels to develop automated and smart logistics solutions to create new revenue streams
- The postal service is considering reducing delivery frequency and potentially closing some post offices as part of broader operational reforms
Why It Matters
The contract change highlights a growing tension between fiscal responsibility and worker welfare in Hong Kong's public sector. As private courier services increasingly dominate e-commerce and cross-border delivery markets, Hong Kong Post faces pressure to transform its business model while managing workforce expectations. The controversy underscores questions about governance accountability and whether management should share the burden of reform before targeting front-line employees who directly serve the public.
The contract change highlights a growing tension between fiscal responsibility and worker welfare in Hong Kong's public sector. As private courier services increasingly dominate e-commerce and cross-border delivery markets, Hong Kong Post faces pressure to transform its business model while managing workforce expectations. The controversy underscores questions about governance accountability and whether management should share the burden of reform before targeting front-line employees who directly serve the public.