Plan to Delay Post Office Staff Cuts Fails Despite Efforts

South African Post Office's TERS Funding Application Rejected

Amidst financial turmoil and looming staff cuts, the South African Post Office's attempt to secure funding from the Temporary Employment Relief Scheme (TERS) has hit a dead end. Despite collaborative efforts with unions and governmental bodies, the plan to delay staff cuts has fallen through.

The Post Office, grappling with a significant decline in its financial health over recent years, sought TERS funding as a last resort to mitigate imminent job losses. Placed under business rescue last year to avert liquidation, the organization has been struggling to settle debts and salaries.

The business rescue plan, which included slashing its workforce by around 6,000 employees from its 11,083-strong staff, aimed to alleviate the burden of an astronomical annual wage bill. However, with the failure to secure TERS funding, the path to executing this plan has become clearer.

Negotiations between the Post Office's business rescue practitioners, labor unions, and governmental representatives resulted in a temporary agreement to withdraw retrenchment notices for some affected workers. The accord stipulated that TERS funding would provide relief for the next 12 months, during which a strategic turnaround plan, not contingent on staff reductions, would be devised.

However, the Commission for Conciliation, Mediation & Arbitration (CCMA) remained skeptical. While acknowledging TERS as a means to provide temporary relief for distressed employers, it emphasized the necessity for a viable turnaround strategy. The CCMA's ruling highlighted that TERS funding would merely postpone, not prevent, inevitable retrenchments.

Despite the collective agreement between the Post Office and unions, CCMA commissioner Willie Hlophe asserted that the business rescue plan, aimed at aligning staffing levels with operational needs, couldn't be circumvented. Hlophe underscored the legal obligation to adhere to the rescue plan, emphasizing the absence of a sustainable turnaround strategy amidst escalating labor costs.

Expressing disappointment, the Post Office's business rescue practitioners, Anoosh Rooplal and Juanito Damons, conveyed their efforts to secure TERS funding as a means to provide temporary relief for affected employees. They lamented the unsuccessful outcome, citing intentions to utilize the funding for upskilling and retraining employees while stabilizing the organization.

With the rejection of the TERS application, the specter of job losses looms large over the Post Office. The withdrawal of termination letters, contingent on the funding's success, now stands rescinded, affecting nearly 4,889 employees within the bargaining unit.

Rooplal and Damons expressed regret over the turmoil caused by the failed application, extending apologies to affected employees and their families. Despite their earnest efforts and collaborative endeavors, the Post Office faces an uncertain future, navigating through financial hardships and the specter of widespread job cuts.