Hongkong Post axes permanent contracts to new postmen amid fin. woes

Hongkong Post staff completing their probation period in September will not be offered permanent positions.

The department cites challenges in the operating environment, noting these staffers would only be offered a 2-year civil service contract.

Financial strains and declining mail volume amid operational challenges -- that's what prompted Hongkong Post's "comprehensive review" of its operating model.

That's not just to scrutinise the current delivery model and optimise their postal network across the city, but also to trim manpower costs, which they say make up the bulk of their operating expenditure.

30 postmen and postal officers who will complete their probation in September will only be offered a 2-year civil service contract.

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

Around 200 employees are expected to be affected.

Postmaster General Leonia Tai says they really cannot issue long-term employment contracts to the staffers.

Considering that terminating their employment after their probation period ends would deal a heavy blow, they decide to minimise the impact by making such a decision.

She also stresses that affected employees still enjoy civil servant status and benefits.

The postal staff labour union says the move to scrap permanent contracts for them is unprecedented -- and also unacceptable noting the staffers were not informed at all prior to the announcement and it will dampen the morale of some 5,000 workers at Hongkong Post.

Secretary for Labour and Welfare Chris Sun says any employment arrangement adjustments would follow the relevant law and contracts.

Since 1995, Hongkong Post has operated on a self-financing model under the Post Office Trading Fund.

After logging losses for eight consecutive years, the Legislative Council allocated 4.6 billion dollars to the fund on July 15th.