SAFTU OPPOSES THE LIQUIDATION OF SOUTH AFRICAN POST OFFICE

BY SAFTU – this post first appeared on their website

Vuka.News SUMMARY: SAFTU’s Demands and Concerns Regarding SAPO’s Financial Crisis

1. Urgent Funding Needed: SAFTU demands the South African government provide R3.8 billion to complete the business rescue process for SAPO (South African Post Office) and stabilize it financially.
2. Background and Current Progress:
   • SAPO has faced ongoing cash flow issues, resulting in business rescue to avoid liquidation.
   • R2.4 billion from the Treasury helped SAPO settle debts and improve solvency.
   • Despite progress, such as reducing mail backlogs and becoming solvent, SAPO needs additional funds to pay creditors and fully recapitalize.
3. Impacts of SAPO’s Struggles:
   • 4,875 employees have been laid off, and 366 branches have closed.
   • Further liquidation would severely impact rural communities relying on SAPO for essential services.
4. Consequences of SAPO Closure:
   • The closure of 657 branches would affect rural communities, making it harder for them to access mail, grants, and financial services.
   • Job losses would affect 5,700 workers, predominantly black women supporting extended families, worsening poverty.
5. SAFTU’s Key Demands:
   • Funding: Immediate R3.8 billion injection to complete SAPO’s recovery.
   • Government Business: All state departments should prioritize using SAPO’s services to ensure steady revenue.
   • Infrastructure Investment: Recapitalization should include funds for modernizing SAPO’s infrastructure.
   • Skills Development: Programs to upskill employees for improved efficiency.
   • Protection of Rural Services: SAPO must retain a national footprint, especially in underserved areas.
   • Multi-Purpose Service Point: Transform SAPO to offer more services beyond mail, boosting its utility and income.
6. Anti-Privatization Stance: SAFTU strongly opposes privatisation and further layoffs, urging the government to save SAPO for the benefit of low-income communities.
7. Planned Actions:
   • SAFTU will push for a meeting with the President and Finance Minister.
   • They are mobilizing protests and calling on unions, including DEPACU, and the public to support their demands.