Another funding injection saves Post Office jobs
The post office will receive R381 million via the Ters scheme over the next six months to preserve the jobs of employees.
Almost 6 000 South African Post Office (Sapo) jobs will be saved via another funding injection.
Sapo and the Unemployment Insurance Fund (UIF) agreed on a deal to fund employee salaries while the government works to restore the postal service's fortunes.
The agreement between the two government entities will see the return of the Temporary Employer-Employee Relief Scheme (Ters) used during the 2020 global health pandemic.
Protecting Sapo workers
The Ters scheme will inject R381 million into the post office over the next six months to assist 5 956 employees.
Sapo had been hoping for a R3 billion bailout at the end of 2024 to avoid liquidation, but National Treasury decided against the move.
The Department of Employment and Labour (DEL) on Sunday announced the implementation of the Ters deal, highlighting it as a crucial part of the post office's stabilisation.
'This is a bold and necessary step to protect workers and restore confidence in our public institutions,' DEL Minister Nomokhosazana Meth.
'The Ters programme is not just a financial mechanism, it is a strategic tool to stabilise employment, support economic recovery, and ensure that no worker is left behind,' the minister explained.
The funds due to employees will be sent to Sapo every month, with the post office responsible for auditing and compliance throughout the process.
'Sapo is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy as a condition of the funding.'
The post office has found formulating a turnaround strategy difficult. In 2023, it entered business rescue with R8.7 billion owed to creditors.
Sapo received a R2.4 billion bailout from the government in 2023 shortly before receiving a provisional liquidation order, which was added to another R1 billion funding injection in 2019.
Despite the entity's troubles, President Cyril Ramaphosa signed the South African Post Office SOC Ltd Amendment Bill late last year.
'The new law enables the post office to serve as a hub for government services and other agency services, and as a digital hub for businesses and communities,' the Presidency stated in December.
'The post office will also be able to serve as a logistics partner to other e-commerce providers – including small enterprises and informal traders – and any future business that the state-owned company may develop to serve users and consumers,' the Presidency added.
NOW READ: Union fights liquidation of Sapo while govt says it cannot bail it out
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