Today's Labour News

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postoffice thumb100 BusinessLive reports that executives at the SA Post Office (Sapo) told MPs on Tuesday that a process was under way at the parastatal aimed at reducing staff numbers and increasing productivity.  

They bemoaned the high and unsustainable cost base at the cash-strapped parastatal, especially salaries and perks, which gobble up more than 70% of its revenue.  Sapo employs about 23,000 people and operates more than 2,400 postal branches around the country.  In a submission to members of parliament’s communications portfolio committee, the company’s executives said that the restructuring would be done in a phased approach.  About 776 employees would be leaving the organisation at the end of November 2019 through voluntary severance packages.  Employees were invited to apply for the package in October and a total of 2,839 quotations were requested.  Sapo said the 776 applications, as approved, would realise savings of R17m a month.  A total of R204m per year in benefits would be paid out, which was below the target of R320m.  Furthermore, the reduction of labour related costs such as overtime and extended hours, would reduce staff expenditure.  Subject to negotiations with organised labour, some functions could be outsourced.  Sapo has also been hamstrung by vacancies in key posts, including that of CEO and CFO.  

  • Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive

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