'No worker left behind': Labour minister confirms R382 million UIF lifeline to save nearly 6,000 SAPO jobs
The Minister of Employment and Labour, Nomakhosazana Meth, has confirmed the implementation of a new agreement between the South African Post Office (SAPO) and the Unemployment Insurance Fund (UIF), aimed at preserving nearly 6,000 jobs and supporting the recovery of one of South Africa's most critical state-owned entities.
Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R382 million into SAPO over six months. The funds will provide immediate financial relief to 5,956 employees while enabling SAPO to implement a long-term turnaround strategy.
'This is a bold and necessary step to protect workers and restore confidence in our public institutions,' said 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.'
Funds will be disbursed in monthly tranches through a dedicated TERS bank account. Meth emphasised that this will happen 'with strict governance, auditing and compliance measures in place.'
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IOL News
16 hours ago
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She noted that the non-payment resulted in a pension debt of R5.2 billion, affecting over 31,000 workers and severely undermining the implementation of the two-pot retirement system. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Maotwe asked whether the Employment and Labour Department has undertaken any investigations into the implicated employers and the number of labour inspectors assigned to conduct compliance checks. She also enquired about enforcement measures taken against non-compliant employers and measures in place to ensure that affected workers were compensated and/or had their retirement savings restored. In her reply, Meth said she was aware of the serious issue raised in the FSCA's 2023 report regarding failure by companies to pay pension fund contributions deducted from employees' salaries. 'This is particularly evident in the Private Security Sector, where membership in the Private Security Sector Provident Fund (PSSPF) is compulsory, even for non-signatory employers, under the collective agreement of the National Bargaining Council for the Private Security Sector,' she said. Meth said that although the Pension Funds Act required employers to pay contributions within seven days and criminalise non-compliance, many employers continued to default, while the PSSPF also faces delays in disbursing benefits to retrenched or retired members. 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She further said the PSSPF has struggled to disburse benefits to retrenched or retired members. 'It has, therefore, become sensible for my department to consider how best to protect these workers, and the possibility could be to use the monitoring and enforcement provisions regulated by Section 34A of the BCEA. 'My department is in the process of withdrawing the determination to restore labour inspectors' powers, a proposal that has received the support of all NEDLAC Labour Law Reform Task Team Constituencies.' Meth said her department has introduced amendments to the BCEA aimed at clarifying the enforcement of unpaid contributions and eliminating jurisdictional duplication with the Pension Fund Adjudicator, Commission for Conciliation, Mediation and Arbitration, and Labour Court. The department has also engaged with the FSCA, Office of the Pension Fund Adjudicator, and National Treasury to align efforts and avoid regulatory overlap. 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Daily Maverick
4 days ago
- Daily Maverick
When will SA provide maternity protections to women in the informal economy?
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eNCA
6 days ago
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US tariffs could cost South Africa up to 100,000 jobs
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