A need to save on costs is the main reason behind a decision to stop offering permanent employment to postal staff completing their probation starting in September, the head of Hongkong Post said on Tuesday.

Under the new policy, some 200 postmen and postal officers – about five percent of total staff – will instead be offered two-year civil service contracts when their probation ends.

Speaking on an RTHK radio programme, Postmaster General Leonia Tai said the move was part of an organisation-wide review that was being conducted in the hope of turning around a money-losing operation.

“In fact, fewer and fewer people are sending letters, so we expect this downward trend to continue – or even widen – in the future. This is a reality we need to face," she said.

"Therefore, in terms of human resources planning, we must be very prudent and make timely adjustments and arrangements to ensure we can make good use of our resources."

Tai stressed that existing postmen and officers would retain their civil servant status and remain eligible for civil service benefits and that she had met with affected staff and union representatives on Monday to explain the decision.

There are also no plans to extend the contract-based arrangement to other existing staff, she said.



Edited by Tony Sabine