{
  "id": 1609395,
  "title": "Hongkong Post scraps permanent contracts for new staff amid financial strain",
  "url": "https://urgent.news/2026/08/18/hongkong-post-scraps-permanent-contracts-for-new-staff-amid-financial",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-18T01:58:41.000Z",
  "source": {
    "name": "South China Morning Post - Hong Kong",
    "slug": "south-china-morning-post-hong-kong",
    "url": "https://www.scmp.com/news/hong-kong/society/article/3364354/hongkong-post-scraps-permanent-contracts-new-staff-amid-financial-strain"
  },
  "original_language": "en",
  "account": "Hong Kong Post has announced it will no longer offer permanent contracts to new employees, as part of cost-cutting measures amid declining financial performance. Postmaster General Leonia Tai Shuk-yiu explained on Tuesday that new hires who pass probation in September or later will receive two-year contracts, akin to civil service terms, due to the organization's dwindling mail volume. \"We must plan our human resources carefully, making timely adjustments to ensure our resources are utilized effectively,\" she stated. \"Offering permanent contracts is not feasible at this time, but we aim to minimize the impact on these employees.\" Approximately 200 individuals will be affected by this decision.\n\nTai emphasized that employees' status as civil servants and their entitlement to welfare benefits during the two-year contract period would remain unchanged. The postal service currently operates from Monday to Friday, and Tai hinted that the frequency of deliveries might be reviewed to determine its necessity. Additionally, underutilized post offices could be closed or have their operating hours reduced to further curb expenditure.\n\nMail volumes handled by Hongkong Post have been on a decline, with figures dropping from 1.24 billion items in 2018-19 to 611 million in 2024-25. The self-financing postal service has suffered eight consecutive years of losses. In an effort to sustain operations, the Legislative Council recently approved a HK$4.6 billion grant to support the trading fund over the next three years, while authorities prepare a detailed report on Hongkong Post's long-term development strategy.",
  "summary": "Hong Kong’s self-financing postal administration will stop offering permanent civil service contracts to new employees as part of cost-saving measures amid a worsening financial outlook. Postmaster General Leonia Tai Shuk-yiu said on Tuesday that new Hongkong Post employees who pass probation in or after September would be offered two-year contracts on civil service terms, as the organisation…",
  "key_points": [
    "Hong Kong Post discontinues permanent contracts for new hires.",
    "New employees receive two-year contracts, similar to civil service terms.",
    "Declining mail volume and financial strain drive cost-cutting measures."
  ],
  "editors_take": "This change in contract policy signals Hongkong Post's shift towards more flexible staffing arrangements as it struggles with financial strain and declining mail volumes, affecting around 200 new employees.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}