SA Post Office planning to retrench thousands more workers, claims union

The SA Post Office is considering laying off more workers as the state-owned postal company has been on a money-losing streak for 15 years and forced to operate without financial support from the government. 

The Post Office told Business Maverick that it is discussing the “possibility of retrenching workers”, but didn’t disclose how many workers might be affected. The Post Office said no final decision had been taken regarding retrenchments at the company.  

But a trade union representing the SA Post Office workers sees the matter about looming retrenchments differently, saying it has been informed by the company that thousands of jobs are on the line. 

Aubrey Tshabalala, the general secretary of the Communication Workers’ Union (CWU), a recognised trade union at the Post Office, said his office was handed a letter last week, with the state-owned company spelling out its plan to press ahead with retrenchments. In the letter, the Post Office said it planned to issue workers with Section 189 notices under the Labour Relations Act, which sets out the steps and consultations that a company must follow before embarking on retrenchments.

Tshabalala has put the number of workers to be affected by the possible retrenchment process at 6,000, but didn’t provide evidence to back this up. 

Retrenchments at the Post Office were always on the cards. 

In recent years, the Post Office launched a two-phase approach to retrenchments aimed at reducing costs including the company’s salary bill, which accounts for 61% of its total expenditure. Phase one of the retrenchment process saw 668 job cuts in 2021. Beyond planned retrenchments, the Post Office’s workforce was also reduced through resignations, dismissals and the expiration of fixed-term contracts, which led to the company reducing its headcount from 15,826 to 14,460.