South Africa

The SA Post Office halts job cuts – with a new turnaround plan

Post Office

The South African Post Office has reached an agreement with labour groups to halt the retrenchment of thousands of employees.

The Congress of South African Trade Unions said the Post Office and relevant unions signed the agreement.

The unions include the Communication Workers Union, the South African Postal Workers Union, and the Democratic Postal and Communications Union.

Following the agreement, all the parties have agreed to withdraw retrenchment notices issued to SA Post Office workers.

According to the pact, the government’s Unemployment Insurance Fund’s Temporary Employment Relief Scheme will help to pay employees for the next 12 months.

During this period, a “progressive turnaround plan, not based upon culling staff” will be put in place.

The deal follows talks between the Post Office’s business rescue practitioners, labour unions, the ministers of communication and labour, and the UIF.

Over the last few years, the SA Post Office’s financial situation has deteriorated significantly, and it has been struggling to pay debts and salaries.

It was placed in business rescue last year to halt its liquidation and pave the way for a R2.4 billion bailout allocated by the National Treasury.

As part of that process, the business rescue practitioners started sending letters of retrenchment to 4,700 of the more than 11,000 employees.

However, these retrenchment letters have now been withdrawn as part of the latest agreement.

The Post Office and the unions said this move was aimed at preserving jobs and limit the effects of the retrenchments.

However, they warned that the withdrawal is conditional to the relief offered by the Temporary Employment Relief Scheme (TERS).

Should the TERS application be unsuccessful, all the parties will “revert to their current positions”.


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