Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      South Africa is behind its neighbours on the plumbing of digital IDs

      South Africa is behind its neighbours on the plumbing of digital IDs

      11 September 2026
      South Africa to extradite US cyberfraud-gang suspects to US

      South Africa to extradite cyberfraud-gang suspects to US

      11 September 2026
      Newspaper group Caxton deploys AI editors

      Newspaper group Caxton deploys AI copy editors

      11 September 2026
      So, who exactly will buy Apple's R50 000 iPhone Duo

      Why Apple can’t tell you who its R50 000 iPhone is for

      11 September 2026
      'There are no adults in the room': the AI safety exodus

      ‘There are no adults in the room’: the AI safety exodus

      11 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Public sector » Union vows to fight jobs ‘slaughter’ at the Post Office

    Union vows to fight jobs ‘slaughter’ at the Post Office

    The Communication Workers Union says the Post Office is supposed to play a developmental role in South Africa.
    By Steve Kretzmann17 January 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Up to 6 000 South African Post Office workers – more than half the current workforce – stand to lose their jobs by the end of March. But the Communication Workers Union is fighting to reduce the proposed number of retrenchments.

    The retrenchments at the beleaguered institution are laid out in the business rescue plan (PDF) published by business rescue practitioners Anoosh Rooplan and Juanito Damons on 23 November.

    The resultant notice of possible termination of posts, in line with section 189 of the Labour Relations Act, was published on 31 December and subsequently distributed to employees.

    The Post Office entered into business rescue on 10 July after being placed under provisional liquidation

    The Post Office entered into business rescue on 10 July after being placed under provisional liquidation following litigation by creditors, including landlords to whom the Post Office had failed to pay rent.

    According to the business rescue plan, the Post Office has debts of R4.5-billion. Of this, R3.9-billion is owed to Postbank, with about R400-million owed in rental arrears.

    The operating losses, states the rescue plan, are “due to declines in revenue and an unsustainable cost base”, with the amount of money earned being less than half the money spent on operating costs. The biggest cost is salaries and wages, with the Post Office paying its employees R1.50 for every rand it earns.

    Return to sender

    As of July, at the commencement of the business rescue, there were 894 operational Post Office branches, but only 113 of them were profitable. This was after 384 branches had closed since the 2022 financial year. But of these closures, only 47 were planned. The remaining 337, some of which were profitable, closed due to non-payment of rent and utilities. While the business rescue practitioners plan to negotiate with landlords to “re-open certain branches”, the branch closures have resulted in about 815 more employees than is needed.

    “Although not all of these employees will be dismissed for operational reasons, these … employees will possibly be affected by the retrenchments,” states the rescue plan.

    The largest staff contingent facing retrenchment are the retail staff, 3 000 of whom stand to lose their jobs, along with about 275 drivers, about 200 employees who have been at home due to ill-health for an extended period, and three of 19 group executive and general manager positions. The remaining retrenchments will come from district manager posts – a post which is to be abolished – and postmen and women, although approximate numbers of employees in these posts are not provided.

    Read: The plan to save the Post Office

    While there are 1 023 branches nationwide (894 of which are operational), the rescue plan is looking to reduce that by half, to 600 branches.

    Although 6 000 jobs are to be cut from a staff complement of 11 038, the business rescue practitioners state their plan saves the remaining 5 038 posts, which would all have been lost if the Post Office were to be liquidated, as well as workers running the risk of receiving no dividends from the liquidation process.

    But the plan’s success depends on a remaining R2.4-billion appropriation and an additional R3.8-billion equity funding coming from national treasury. Should all proceed as planned, the retrenchment process is expected to be completed by 31 March.

    The Communication Workers Union (CWU), the largest union in the Post Office, representing 34% of all employees, intends to stem the job losses.

    “Clearly the business rescue plan is not worker friendly in any way; it is creditors seeing what they can get out of the process,” said CWU collective bargaining coordinator Nathan Bowers, adding that more than 70% of the creditors voted for large scale retrenchments prior to the business rescue plan being developed.

    In rural areas, the Post Office is of utmost importance, even in towns and cities. It has the best network

    Bowers said the first sitting of the Commission for Conciliation, Mediation and Arbitration (CCMA) to appoint a facilitator for the retrenchment process is on 26 January.

    Bowers said while workers were “always going to be the casualties” of the business rescue plan, 6 000 job losses was “slaughter”, particularly given the current unemployment rate.

    But he said Icasa regulations also state how many Post Office branches there should be in an area, based on the population. The CWU would be “looking into” how the retrenchment of 6 000 workers aligned with the Icasa regulations.

    According to the Postal Services Act of 1998, Icasa had a regulatory function “to promote a universal postal service that will ensure equal access for all citizens to a basic better service that is reasonable and accessible to all people in the country regardless of their physical location and at a uniform rate and affordable prices of postage”.

    Developmental role

    Bowers said the Post Office, together with other state-owned companies, was supposed to play a developmental role in the country. “In rural areas, the Post Office is of utmost importance, even in towns and cities. It has the best network in the country.”

    He said the provisional liquidation of the Post Office and the subsequent business rescue plan was a development the union placed “squarely on the mismanagement through various administrations”, particularly given the findings of corruption at the Post Office by the Public Protector in 2016; among which was the irregular appointment of labour brokers between 2002 and 2012 which cost the Post Office R2.7-billion.

    Read: ‘We can save the SABC and the Post Office’

    The Post Office has also not been paying over employees’ pension fund deductions to the Post Office Retirement Fund since April 2020, despite 7.5% being deducted from workers’ salaries as part of their retirement fund contributions. This is also despite a scathing supreme court of appeal judgment delivered on 31 December 2021 ordering the company to pay the retirement fund arrears, as well as 9.75% interest on the outstanding amount, within five days of the order.

    A Post Office manager who cannot be named as he had no authority to speak to the media said retirement funds were still being deducted, but not paid over. GroundUp attempted to contact the Post Office retirement fund principal officer Mike Faasen to confirm this, but was not able to reach him.

    The Post Office manager said while workers opting for retrenchment were reimbursed for the retirement fund deductions, they were not receiving the interest on their payments over the last three years. Also, the contribution from their employer to the retirement fund was supposed to be 13.5% of their salary, and they were losing out on the interest this would have earned them.

    As of May last year, GroundUp calculated the Post Office owed about R1-billion in non-transferred deductions to the Post Office retirement fund.

    • This article was originally published by GroundUp. It is republished by TechCentral under a Creative Commons Attribution-NoDerivatives 4.0 International Licence. Read the original article

    Get breaking news alerts from TechCentral on WhatsApp

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Anoosh Rooplan Juanito Damons Mike Faasen
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEmbracing identity: a glimpse into the future of cybersecurity
    Next Article New CEO for Mimecast as Peter Bauer steps down after 21 years

    Related Posts

    The Post Office has fixed its books but not its business

    The Post Office has fixed its books but not its business

    3 August 2026
    Tap to pay is finally coming to the Post Office

    Tap to pay is finally coming to the Post Office

    17 July 2026
    The Post Office has fixed its books but not its business

    Post Office moves to exit business rescue – but with no funded future

    18 June 2026
    Company News
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    South Africa is behind its neighbours on the plumbing of digital IDs

    South Africa is behind its neighbours on the plumbing of digital IDs

    11 September 2026
    South Africa to extradite US cyberfraud-gang suspects to US

    South Africa to extradite cyberfraud-gang suspects to US

    11 September 2026
    Newspaper group Caxton deploys AI editors

    Newspaper group Caxton deploys AI copy editors

    11 September 2026
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}