Hong Kong Post Must Reform, John Lee Says Amid 2-Year Contract Row
HK01 · 3 SOURCESabout 1 hour ago2 MIN
Summary
Chief Executive John Lee Ka-chiu confirmed that Hong Kong Post must undergo reforms after the department announced plans to offer 2-year contract renewals rather than permanent positions to staff completing their probation period in September. The changes affect more than 200 employees and come as the postal service faces nearly HK$800 million in losses for 2024/25, requiring a HK$4 billion funding application to the Legislative Council for three years of operating capital.
Key Points
- Hong Kong Post operates under a Trading Fund model, meaning it self-finances through commercial operations rather than direct government budget allocation
- The department recorded losses approaching HK$800 million in the 2024/25 fiscal year and seeks over HK$4 billion in Legislative Council funding
- More than 200 staff finishing probation in September will receive 2-year civil servant contracts instead of permanent appointments
- The Commerce and Economic Development Bureau will expedite research on reform proposals to present to the legislature
- The Civil Service Bureau will maintain dialogue with affected employees and assist with transitional arrangements
Why It Matters
The reform signals a potential shift in Hong Kong's civil service culture, where permanent employment has long been considered guaranteed. As the postal service battles declining mail volumes due to digitalization, the government's approach to Hong Kong Post could set a precedent for other quasi-commercial government operations facing similar structural challenges.
The reform signals a potential shift in Hong Kong's civil service culture, where permanent employment has long been considered guaranteed. As the postal service battles declining mail volumes due to digitalization, the government's approach to Hong Kong Post could set a precedent for other quasi-commercial government operations facing similar structural challenges.