Post Office crisis: Workers say liquidation would devastate communities

The Communication Workers Union (CWU) says a proposal to liquidate the South African Post Office (Sapo) threatens the livelihoods of thousands of workers and risks dismantling a critical public institution that continues to serve millions of South Africans, particularly in rural and working-class communities.

This comes after Communications and Digital Technologies Minister Solly Malatsi received a letter from the Sapo business rescue practitioners (BRPs) expressing their intention to file for liquidation.

Sapo liquidation

Malatsi said the BRPs sent him the letter on Friday afternoon.

“It is my view that any talk of liquidation at this stage is premature, given the extensive ongoing conversations within government, particularly between the Department and National Treasury, regarding the prevailing situation at the SA Post Office,” Malatsi said.

CWU national organiser Moffat Seutlwadi said organised labour has not been formally consulted or engaged on any proposal to liquidate the Sapo.

Crisis

Seutlwadi said CWU believes the current crisis at the Sapo reflects “serious failures” by BRP, government departments and the broader leadership responsible for the institution.

“Any attempt to take such a drastic decision without engaging workers and their representatives is unacceptable and undermines the principles of fair labour practice and social dialogue.

“Liquidation would not only destroy thousands of jobs but would also have devastating socio-economic consequences for communities that rely on Sapo for essential services, including postal services, financial transactions, and access to social support systems,” Seutlwadi said.

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National asset

Seutlwadi added that the Sapo remains a “strategic national asset that plays a critical role in providing services to poor, rural and marginalised communities.”

He claims that Sapo workers have not received a salary increase for eight years, is deeply concerned that 18% pension contributions owed to workers remain unpaid, and thousands of employees have been retrenched, leaving families and communities devastated across the country.

“Allowing Sapo to collapse through liquidation would deepen inequality and remove an essential public service from communities that depend on it the most.

“CWU therefore calls on government to urgently intervene and demonstrate real political commitment to stabilise and rebuild Sapo,” Seutlwadi said.

Engagement

CWU has demanded “immediate engagement” with organised labour, urgent payment of outstanding pension contributions, clarity on the implementation of government funding and a credible turnaround strategy to protect jobs and services.

Before the 2026 Budget Speech, the Sapo requested R3.8 billion to exit business rescue, but Treasury did not allocate any funds.

Instead, the Sapo would receive funds from the department of Communications and Digital Technologies, which allocated R700 million for its universal service obligations to provide postal services in underserved areas.

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