SAPO plans to lay off a large number of employees after issuing Section 189 notice

SAPO plans to lay off a large number of employees after issuing Section 189 notice

The South African Post Office (SAPO) is planning to retrench a bulk of its workers after issuing a Section 189 notice. Workers say they have learnt with shock the planned move by the Post Office which will affect 6 000 workers.

This forms part of a turnaround strategy that will include the cutting of staff salaries by as much as 40%.

SAPO says this is in a bid to cut employment costs and ensure the entity is profitable after it incurred a loss of R2.3 billion in the past financial year.

 Video: SAPO going ahead with massive job cuts

Union to challenge

The Communications Workers Union General Secretary Aubrey Tshabalala says they will challenge the planned retrenchments.

“This happens at a time when we are in discussions around the 40% salary cut or hours of work. So what does it paint to us? It paints a very indecisive management that a week back you were thinking of cutting salaries, and a week later you are now thinking of dismissing almost everyone in the bargain area – meaning that those who are basically doing the actual work in the post office, almost all of them are facing dismissal.”

CWU’s Aubrey Tshabalala on planned 6 000 SAPO retrenchment

South African Federation of Trade Unions and its affiliate, the Democratic Postal and Communications Union say they are appalled by the mismanagement of the SA Post Office.

SAPO’s plan is said to be on their restructuring plans that have, amongst others identified the “staff costs” as the “highest cost drivers” of the “cost base that far exceeds its revenues”.

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