Post Office ‘unable’ to pay full salaries

The SA Post Office was put under administration in November last year after a protracted four-month illegal strike. Picture: Emile Hendricks/Foto24
The SA Post Office was put under administration in November last year after a protracted four-month illegal strike. Picture: Emile Hendricks/Foto24

Johannesburg - The cash-strapped South African Post Office (Sapo) will struggle to pay its staff their salaries in October 2015.

This is according to a written response on October 16 by Sapo to the Communication Workers Union (CWU), the South African Postal Workers Union (SAPWU) and the Democratic Postal and Communication Union (DEPACU) regarding October 2015 salary payments.

In the letter - which Fin24 has seen - Sapo explained that because of "current financial constraints", it is unable to pay full salaries on October 25 2015.

"Payment will be made as follows: 50% on the 25 October 2015; and the balance will be paid on the 31 October 2015,” wrote the Sapo official in the letter.

Fin24 further reached out to Sapo to confirm the contents of the letter.

"We can confirm that we are facing an objective negative financial position (this fact has been shared with all our partners and the public previously)," said Sapo spokesperson Khulani Qoma via email.

"Unfortunately, this impacts our most priced (sic) asset, our employees, amongst many other partners. Consequently, our salary run for this month will be based on a 50%/50% split, with one portion occurring on the 25th and the balance on the 31st of October.

"This approach was the best the company could afford under these extremely difficult conditions. We are in conversation with our labour partners to mitigate immediate impact while we continue to work towards a sustainable partnership," said Qoma.

Sapo was plunged into turmoil in 2014 amid a crippling strike and a poor financial performance.

The months-long strike resulted in post piling up and the Sapo board resigning in November 2014.

Sapo was then also put into administration as it struggled to pay suppliers and staff. Earlier this year, it was reported that it expected to report a loss of R1.3bn.

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