Strike has 'little effect' on Post Office

2016-05-05 14:12 - Duncan Alfreds, Fin24
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South African Post Office. (Duncan Alfreds, Fin24)


Cape Town – The strike by union workers has had a negligible impact on operations at the South African Post Office (Sapo), the state-owned entity announced.

The Communication Workers Union threatened a nationwide strike to demand higher pay for workers and the appointment of permanent employees.

However, the Post Office noted that the strike had a minimal effect on operations.

“Industrial action by one of the unions at the SA Post Office commenced today (05 May 2015). However, it has had negligible impact on the SA Post Office’s operations with business as usual nationally. Less than 1% of Post Office employees are involved in the industrial action and less than 2% of our 2 500 points of presence nationally affected,” the organisation said in a statement.

It added that just four branches in Gauteng were closed as a precautionary measure: Carltonville main branch, Oberholzer (also in Carltonville) Kliptown (Soweto), and Benoni.

READ: Management collapse to blame for Post Office losses

Finances at the Post Office remains strained as the organisation’s management moves to secure loans and return the entity to profit by a self-imposed 2018 deadline.

“As the SA Post Office service and delivery standards continue to recover and as ongoing efforts are made to resolve its difficult financial position, it is critical that all of us hold this balance and maintain stability, especially at this time when we are finalising our plans raising funding,” said Mark Barnes, Post Office chief executive.

Sapo reported a loss of R1.497bn in the 2015 financial year, and a provisional loss of R1.035bn in the current year.

The Auditor General’s report showed irregular expenditure of R576 861 000 and fruitless and wasteful expenditure of R95 056 000 as contributing factors to the dire financial situation.

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