The move to cut wages of new recruits and staff on non-civil service contract terms has been criticised.
Temporary staff at the Post Office were the first to have their salaries slashed. Postmaster- General Luk Ping-chuen announced that the salaries of tem porary staff would be cut by 20 per cent, which would save the Post Office $4 million a year.
Although estimated revenue for last year was $4 billion, the Post Office had failed to achieve a 10.5 per cent target rate of return. Postal business dropped 5.5 per cent last year.
Some staff were unhappy and sought help from the Confederation of Trade Unions.
Confederation of Trade Unions secretary-general Lee Cheuk-yan said cutting temporary staff's salaries was unfair.
'It's also a breach of civil service regulations, which say temporary staff should be employed on a short-term basis for not more than one year,' he said.
