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Johannesburg - Telecommunications and Postal Services Minister Siyabonga Cwele has extended the SA Post Office's (Sapo) administrator's term for three more months, his department said on Wednesday.
Simo Lushaba's term would now run to May 6, Cwele said in a statement.
He was appointed by Cwele and Finance Minister Nhlanhla Nene as the head of Sapo's intervention team.
"The past three months have been tough but promising. We appreciate the hard work and sacrifice made by all stakeholders, especially the workers and business, towards returning the post office to the right track."
Government was looking at ways to strengthen Sapo by using it to deliver more services. These would be delivered using already existing infrastructure that had a strong presence in rural and peri-urban areas.
A technical task team was given three months to address Sapo's challenges.
These included normalising labour relations, building revenue streams, resolving the suspension of the CEO and other executive members, filling vacancies, and transforming Sapo into a corporation.
In November, Sapo's board voluntarily resigned. At the time Cwele said this would allow him to take steps to resolve issues at the post office.
The postal strike worsened the Sapo's financial situation. It faces a R400m shortfall as mail volumes continued to decline.
Unions wanted an 8% wage increase and the permanent employment of all casual workers.
In November, MPs were told the cash-strapped Sapo was on the brink of collapse. By the end of that month a wage agreement was reached with two of three recognised unions at the Sapo.
The two unions - the SA Postal and Allied Workers' Union (Sapawu) and the Democratic Postal and Communications Union (Depacu) - agreed to a 6.5% wage increase for the bargaining unit, which would be effective on December 1.
Sapawu and Depacu represent 61% of employees at bargaining level.
Part of the agreement involved converting part-time and casual employees to full-time employees from December 1, with full benefits becoming effective on April 1, 2015. The full conversion would be completed within 24 months.
The Communication Workers Union, which represents 39% of the employees, demanded a 7.5% increase. It refused to sign the agreement.
