News24 reports that for the second time in the past two months, the SA Post Office (SAPO) failed to pay over staff medical aid contributions to its medical aid provider, Medipos.
SAPO spokesperson Johan Kruger confirmed that the entity had failed to pay medical aid contributions for November, but said that it was playing open cards with staff and working towards a solution. "The Post Office was unable to pay medical aid contributions this month owing to cash flow issues. Employees were informed immediately and the Post Office is implementing long-term plans to improve its finances," said Kruger. In October, trade union Solidarity had to take SAPO to the Labour Court in order to compel it to pay R4.5 million in contributions. Democratic Alliance (DA) MP Diane Kohler-Barnard said in a statement that she would report SAPO management to the Commission for Conciliation, Mediation and Arbitration (CCMA) over the crisis. "The amounts are taken from their monthly salaries, but simply kept by the management. One would remember that the SAPO had earlier this year failed to pay over R700 million in Medipos contributions," said Kohler-Barnard. SAPO is planning to retrench staff to ease its financial burden, but the process is in the early stages. It is moreover scrambling to keep IT systems for the provision of social grants going as a contract that it has with Telkom for this purpose is expiring soon.
- Read the full original of the report in the above regard by Khulekani Magubane at Fin24
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