Unions Push Back Against HK Post's Decision to End Permanent Roles for New Hires
HKFP · 1 SOURCESabout 2 hours ago2 MIN
Summary
The Hong Kong Federation of Trade Unions (FTU), a pro-Beijing labour coalition, is urging the government to halt Hongkong Post's decision to stop offering permanent civil servant contracts to new hires in a cost-cutting move expected to affect around 200 postal workers. FTU lawmakers and union representatives met with Hongkong Post officials and representatives from the Commerce and Economic Development Bureau and Civil Service Bureau on Tuesday to express "deep concern" over the new employment terms. The postal service says the change is necessary due to continued decline in mail traffic and a record operating loss of HK$821 million last year. Union members argue the government should not use financial pressure as a pretext to erode the rights of frontline employees, especially given recent legislative approval of a HK$4.6 billion bailout.
Key Points
- Hongkong Post will only offer two-year contracts to new hires whose probation periods end during or after September 2025
- About 200 postal service staff members including mail carriers and postal officers are expected to be affected by the policy change
- Postmaster General Leonia Tai cited continued decline in mail traffic with 611 million items handled last year, a 12 percent year-on-year drop
- The postal service reported a record operating loss of HK$821 million in 2025, up from HK$554 million in 2024
- Package postings to the United States remain suspended for over a year amid ongoing trade tensions with Washington
- The Legislative Council approved a HK$4.6 billion bailout last month to support post office operations over three years
- FTU lawmaker Lam Wai-kong argued the capital injection should provide sufficient financial buffer, questioning the need to erode employee rights
Why It Matters
The decision signals a potential shift in how the Hong Kong government treats civil servant employment, moving away from permanent positions toward contract-based arrangements that offer less job security. With the postal service already receiving a substantial bailout, unions question whether the policy change is truly financially necessary or represents a broader erosion of worker protections in the public sector. This dispute highlights the tension between fiscal responsibility and maintaining stable, well-protected civil servant positions during an era of declining traditional postal services.
The decision signals a potential shift in how the Hong Kong government treats civil servant employment, moving away from permanent positions toward contract-based arrangements that offer less job security. With the postal service already receiving a substantial bailout, unions question whether the policy change is truly financially necessary or represents a broader erosion of worker protections in the public sector. This dispute highlights the tension between fiscal responsibility and maintaining stable, well-protected civil servant positions during an era of declining traditional postal services.