The South African Post Office (SAPO), which is under business rescue, has begun the process of retrenching thousands of workers including postmen, drivers, retail staff, and managers.
The troubled post office has written to employees and union leaders to inform them of the possibility of retrenchment.
The notice of possible termination of jobs due to operational requirements was sent out on 31 December 2023.
While the employees and unions were invited to consult, the disclosures made by SAPO, which was placed under business rescue last year on 10 July, paint a bleak picture.
The SA Post Office has not been making any profit as its operational expenses far outweigh its profit.
Besides, the SA Post Office has already been placed under provisional liquidation as a result of its continuous failure to honour its financial obligations when they become due and payable.
The business rescue plan, which was published and approved by the body of creditors, makes provisions for the reductions of the staff complement within SAPO.
Writing to employees and unions SAPO said: “This letter therefore serves to inform you that SAPO is faced with the unavoidable situation wherein the staff complement as identified in the business rescue plan will have to be considered for a possible dismissal for operational requirements.
“The rationale for dismissals have been detailed on a number of communications and presentations shared with the employees as represented by their respective unions in the National Consultative Forum.”
The business rescue plan includes an independent assessment to establish how many employees will likely be affected by the retrenchment process.
“From the assessment conducted during the BR process, a cumulative figure of 6000 positions were seen as being potentially affected by the retrenchment process,” SAPO said.
“The new proposed structures, which abolished other positions and consolidated others, have been prepared and will be shared as part of section 189A of the LRA process to enable proper consultation.”
Among the proposals was the abolishment of the positions of district managers and area managers.
Employees stationed at branches that have since been closed down were also likely to be retrenched.
Temporary and “Total Disability Employees” including those who have been at home because of health reasons also face termination.
Retail Staff. Between 2500 to 3000 of the Retail staff would possibly be affected by the retrenchment.
Because the post office has lost most of its vehicle fleet drivers were in line for retrenchment.
Postmen and postwomen were likely to be affected by the possible retrenchments.
