Hongkong Post ditches permanent contracts for new staff

Hongkong Post says its employees who complete their probation period in September would have their civil service contract terms renewed for two years -- ditching permanent contracts for new staff.

The move comes as Hong Kong Post cites challenges in the operating environment and in a bid to boost revenue and trim expenses as Hongkong Post has recorded losses for eight consecutive years.

On July 15th, the Legislative Council earmarked 4.6 billion dollars to the Post Office Trading Fund.

Hongkong Post cites financial strains and declining mail volume amid operational challenges so a comprehensive review of the operating model is needed.

As for employees whose probation period ends after September, decisions will be made based on their performances and operational needs.

Postmaster General Leonia Tai says that under the new arrangement, about 200 employees are expected to be affected.

She says they make the decisions after considering that terminating their employment after their probation period ends would deal a significant blow to them.

She also stresses that affected employees still enjoy civil servant status and benefits. Authorities will also review the current delivery model and optimise the city's postal network of about 120 post offices. They include reviewing whether there are service coverage overlaps.