Pro-Beijing union coalition urges Hongkong Post to reverse halt on permanent contracts
Summarized and contextualized by DistantNews.
At a glance
- A pro-Beijing union coalition urged Hongkong Post to reverse its decision to stop offering permanent contracts.
- The move affects about 200 postal workers and is intended to cut operating costs amid declining mail volume and record losses.
- Unions argue that a recent government bailout should provide a financial buffer, and that the decision erodes employee rights without prior consultation.
A coalition of pro-Beijing trade unions has called on Hongkong Post to reverse its decision to halt permanent civil servant contracts for new hires. This policy change, aimed at reducing operating costs, is expected to impact approximately 200 postal workers. The Hong Kong Federation of Trade Unions (FTU) has expressed deep concern, urging the government not to rush the decision. They advocate for prioritizing communication with unions to find alternative solutions for financial pressures.
We are facing a continued decline in mail traffic, with fewer people sending mail in traditional formats. We expect the drop to continue and even widen in the future.
Hongkong Post plans to offer only two-year contracts to new employees, including mail carriers and postal officers, whose probation periods end in or after September. Postmaster General Leonia Tai cited a continuous decline in mail traffic, projecting further drops in the future. The postal service reported a record operating loss of HK$821 million last year, a significant increase from HK$554 million in 2024, with mail volume dropping 12% year-on-year.
We are facing a continued decline in mail traffic, with fewer people sending mail in traditional formats. We expect the drop to continue and even widen in the future.
Despite a HK$4.6 billion bailout approved by the Legislative Council to support operations over the next three years, FTU lawmaker Lam Wai-kong argued that the capital injection should be sufficient. He stated that strained finances should not be used as a pretext to undermine frontline employees' rights. The union also highlighted that the new arrangement was introduced without prior consultation and lacks clear renewal terms after the two-year contracts expire. Employees who relied on the job security of civil service contracts now face uncertainty in planning their livelihoods, especially as sole financial providers for their families.
We are facing a continued decline in mail traffic, with fewer people sending mail in traditional formats. We expect the drop to continue and even widen in the future.
Originally published by Hong Kong Free Press. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.