The South African Post Office (SAPO) is set to retrench 4,900 employees after an unsuccessful application for the Temporary Employee Relief Scheme (TERS).
The funding was brought forward by the Joint Business Rescue Practitioners and the relevant labour unions to get funding for the Post Office’s bargaining staff, and this week, the Commission for Conciliation, Mediation and Arbitration (CCMA) and a Single Adjudication Committee, ruled against the relief, the IOL reported.
“As was noted in the application agreement, the withdrawal of the termination letters was conditional on the success of the TERS application and if not successful, as is the case now, the bargaining unit category of employees would revert to the current position and so be retrenched.” Joint Business Rescue Practiioner, Anoosh Rooplal, said.
[COMING UP] The retrenchments are going ahead after the Post Office’s joint business rescue practitioners announced that attempts to secure funding from the UIF’s Temporary Employment Relief Scheme have failed
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He added that the total number of 4 889 employees would be retrenched, and said he was disappointed with the unsuccessful application, as they hoped the TERS funding would provide temporary relief to staff members.
Rooplal argued that the funding would have assisted employees as the Post Office tried to become more financially stable and hopefully start to grow as a business entity.
According to SABC News, the UIF’s TERS would’ve helped pay employees for the next 12 months while a turnaround plan was to be put in place. The troubled state-owned company was placed under business rescue in July last year as its financial situation deteriorated and it struggled to pay debts and salaries.
Rooplal has apologised to the affected employees, saying they are conscious of the turmoil the failed TERS application causes to the employees and their families.
Compiled by Matthew Petersen
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