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Business Report writes that Minister of Communications Mondli Gungubele says the restructured SA Post Office (Sapo) will be “lean, agile and cost effective”.
Speaking at a briefing on Thursday, he said the business rescue process currently being carried out was a costly exercise, but way better than liquidation of the entity. In his 2023 budget, Finance Minister Enoch Godongwana allocated a R2.4 billion bail-out to Sapo. Gungubele said government’s aim was to save the entity and ensure it continued as a business. In this regard, turning Sapo into an effective, innovative and financially viable entity remained the foremost priority of government. As part of a restructuring process, 235 post offices were due to close across the country. Gungubele indicated: “The BRPs (business rescue practitioners) continue to engage labour representatives to ensure a seamless process on all labour related issues.” The BRPs on Thursday confirmed that some 4,700 retrenchment letters had been issued to staff to date. They said retrenchment payments would be made over eight months, in four tranches. Though the job cuts will reduce the headcount from 11,083 to 6,383 workers, the losses will be less than the 6,000 jobs estimated to be at risk when the Sapo’s business rescue plan was adopted by more than the required 75% of creditors in December last year. Gungubele said he preferred to leave the issue of the number of jobs to be cut to be addressed by the BRPs themselves.
- Read the full original of the report in the above regard by Siphelele Dludla at Business Report
Get other news reports at the SA Labour News home page