Johannesburg – The South African Post Office (SAPO) has begun the process of retrenching 6 000 workers – just a week after suggesting 40% cuts in salaries.
Taken aback by the development, the Communication Workers Union (CWU) on Saturday said SAPO “has dropped a bombshell at the doorstep of the union by giving a notice in terms of Section 189 and 189 (A)”.
Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements.
The CWU said the move means the post office “intends to dismiss 6 000 workers”.
“The notice comes a week later after the company called a meeting with the unions to discuss the 40% salary cuts or hours of work reduction with all key stakeholders present,” the union said.
“However, the company failed to adhere to its own processes where such matters should or can be discussed at the bargaining chamber with all the key stakeholders.”
Last year in May, CEO Nomkhita Mona said SAPO was in the process of permanently closing 130 branches across the country.
The CEO made the comments soon after SAPO was declared commercially insolvent, with its 2019/2020 financial results showing it had incurred losses of more than R1.7 billion, while its liabilities exceeded assets by R1.5 billion.
However, on Saturday the CWU said “These retrenchments will effectively mean a cut off of the Post Office network and a negative impact on the services that the entity offers to communities, in particular the poor.
“These retrenchments are a direct threat to any plans of modernisation or recapitalisation of SAPO, therefore the turnaround strategy, ‘Post Office Of Tomorrow,’ will only be good for shelf decoration.”
The CWU said it was unfortunate that the postal and courier market space was “opened for multinational companies to the disadvantage of the SOE and the people of this country”.
The CWU added: “In recent times, we have witnessed how our people are suffering with a closure of a number of retail/depo’s SAPO offices in the country and the multitude of poor people being unable to access their social grants payments”.
At least 100 SAPO branches have been identified for upgrading to accommodate the envisaged bank operations
However, the CWU said: “The plan cannot be implemented without funding, nor can it be successful without workers who are crucial to the network existence of SAPO”.
The union said it was calling for “urgent state intervention, which includes but not limited to financial injection”.
