SAPO and UIF agreement to protect nearly 6 000 jobs
The South African Post Office (SAPO) has received a R381 million wage subsidy
Image: Bhekikhaya Mabaso/Independent Newspapers
The implementation of the signed agreement between the South African Post Office (SAPO) and Unemployment Insurance Fund (UIF), aimed at preserving nearly 6000 jobs, is a bold and necessary step to protect workers and restore confidence in public institutions, says Employment and Labour Minister Nomakhosazana Meth.
Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R381 million into SAPO over a six-month period.
This intervention is designed to provide immediate financial relief to 5956 employees while enabling SAPO to implement a sustainable turnaround strategy.
The UIF and the SAPO have formally entered into a Memorandum of Agreement (MOA), marking the establishment of a strategic partnership between the two entities.
“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,” Meth said.
The Minister explained that the funding will be disbursed in monthly tranches through a dedicated TERS bank account, with strict governance, auditing, and compliance measures in place.
SAPO is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy as a condition of the funding.
The intervention follows a rigorous adjudication process by the TERS Single Adjudication Committee (TERS SAC), which includes representatives from the CCMA, the Department of Higher Education, the Department of Small Business Development, and other key stakeholders.
Earlier this month, chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko, described the approval of six months of income support for the Post Office as "a much-needed lifeline that the state is both morally and duty-bound to extend."
According to reports, this latest round of income support brings the total amount of government bailouts for SAPO to approximately R9.8 billion since 2014.
Cape Times