Post Office branches closed due to financial troubles

Employees of the South African Post Office (Sapo) at numerous branches across the country were locked out of work this week, as the battling entity struggled to pay its rent in several locations.

The Post Office, which suffered a staggering R429 million net loss in the last three months, has allegedly kept its workers in the dark about its financial woes, with staff members only realising the extent of the problems when they arrived to chained doors and gates.

Also Read: Post Office looking to sell non-core properties to generate revenue

An unpleasant surprise for workers

David Mangena, general secretary of the South African Postal Workers Union, said Sapo was unfair and dishonest to workers about the depth of its problems.  This, he said has left workers anxious and frustrated about their future.

He said they were completely unaware that the cash-strapped Sapo, with its year-to-date net loss increased to R1.354 billion, would be unable to pay rent for its branches.

At least 65 Sapo branches have been closed across the country due to rental arrears, with pension and medical aid contributions deducted, but not paid to service providers.

“Everything we know is from the media. The leadership of Sapo is not talking to us and we are supposed to look after the interests of our members. I am certain that management would know which branch they will close when but this is not communicated,” Mangena said.

He said last week in Komatipoort, Mpumalanga, workers found their branch locked, with no notice at the door.

Mangena said they also learned from the media about the appointment of the new Chief Executive Officer, Nomkhita Mona, who is tasked with rescuing Sapo.

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“It is concerning because if branches are being closed, then jobs are on the line and no one is saying anything,” he said.

Post Office ‘heading for financial collapse’

Sapo leadership has told the Portfolio Committee on Telecommunications and Postal Services that the revenue shortfall contributed to cash deficits to pay suppliers and service providers, including employee benefit contributions.

The DA warned that despite almost R8-billion in government bail outs in the past seven years, was headed for financial collapse.

The Post Office denied that the organisation’s financial challenges were not communicated to workers.

An official from Sapo, who asked not be named who asked not to be named as he was not officially authorised to speak to the media, said there were forums where the labour unions were kept abreast of the situation, but said they had no control on the access to branches as these were private properties.

“It is not Sapo that is locking out staff but that is the decision of the landlord and in many cases we are not aware what the landlord intends doing.”

He said they have reached agreements with two landlords, which brought the number of closed branches to 63.

“More branches will be opened as agreements are reached with landlords,” Kruger added.

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