Hongkong Post will offer two-year contract terms to about 200 postal workers who complete their probation in September instead of issuing permanent appointments, according to information circulating online.
The department confirmed it has no conditions to offer long-term appointments at present amid declining mail volumes and a review of its operating model, but said affected staff will retain civil servant status and benefits.
Under the proposed arrangement, staff will receive 5 percent MPF contributions and a 15 percent gratuity upon contract completion, while continuing to receive annual pay increments. All civil service benefits will remain unchanged.
The plan was reportedly discussed at a Departmental Consultative Committee meeting on Monday, with union representatives opposing the move.
Hongkong Post said the decision was made after a comprehensive review of its operating model, as mail volumes continue to decline and are expected to fall further. The department said it must prudently plan human resources and make timely adjustments to ensure efficient use of resources.
The department said it will review staff arrangements again once its future development direction is set. Staff who complete probation after September will also be considered for contract renewal based on operational needs at the time.
Legislator Shiu Ka-fai said the move is a responsible approach given Hongkong Post's self-financing nature and the need to properly use public funds, though he said he does not expect similar arrangements to extend to other government departments given the postal service's unique role.