Moneyweb reports that an agreement signed by the SA Post Office (Sapo) and the Unemployment Insurance Fund (UIF) will inject R381 million over six months for nearly 6,000 post office workers.
The funds will be made available through the Temporary Employer-Employee Relief Scheme (Ters), which is for companies facing financial distress. This is part of a package of measures intended to rescue the SA Post Office (Sapo), which was placed in business rescue in 2023 owing creditors R8.7 billion. Costs were reported to exceed revenue by 200%, with employee costs alone accounting for 150% of revenue. Sapo and the UIF have now signed an agreement establishing a strategic partnership between the two entities. Employment and Labour Minister Nomakhosazana Meth indicated: “This is a bold and necessary step to protect workers and restore confidence in our public institutions. 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.” The funding will be disbursed in monthly tranches through a dedicated Ters bank account, with strict governance, auditing, and compliance measures in place. Sapo will be required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy as a condition of the funding. About 4,800 workers, or 43% of the workforce, were retrenched in July 2023.
- Read the full original of the report in the above regard by Ciaran Ryan at Moneyweb
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