Millions set aside to save Post Office jobs

Millions are set to be injected to safeguard thousands of jobs at the South African Post Office (SAPO).

The Unemployment Insurance Fund (UIF) will inject over R381-million into SAPO over a six-month period to ‘provide immediate financial relief to 5 956 employees while enabling SAPO to implement a sustainable turnaround strategy’.

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This is according to the Department of Employment and Labour following the signing of an agreement between SAPO and the UIF.

“This is a bold and necessary step to protect workers and restore confidence in our public institutions.

“The Temporary Employer-Employee Relief Scheme (TERS) programme is not just a financial mechanism—it is a strategic tool to stabilise employment, support economic recovery, and ensure no worker is left behind,” said Employment and Labour Minister Nomakhosazana Meth.

Meth said the funding will be disbursed in monthly tranches through a dedicated TERS bank account, with strict governance, auditing, and compliance measures in place.

“SAPO is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy as a condition of the funding,” she said.

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In July 2023, the SA Post Office was placed under business rescue as its ‘financial stability had been undermined by unsustainable costs, operational inefficiencies and its failure to modernise’.

It faced several challenges, including overdue payments to landlords and suppliers, resulting in various legal applications being instituted.

This led to the closure of many Post Office branches across the country, including in the Zululand region.

In September last year, business rescue practitioners revealed that they are pursuing partnerships with various organs of State to revitalise Post Office operations.

“An important reminder is that the reason and efforts made to restructure this business are based on the fact that the Post Office has a social mandate that requires it to serve all South Africans.

“While city dwellers have the means to pay for and access communication networks, South Africans living in rural areas have fewer choices.

“We will not exclude the urban hubs, but we intend to fulfil our social mandate by providing wi-fi, printing, scanning, training and development of internet usage in local townships and rural areas,” said business rescue practitioner Anoosh Rooplal.

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