By Johnathan Paoli
In a move to rescue the struggling South African Post Office (SAPO), Employment and Labour Minister Nomakhosazana Meth has formally announced the implementation of a R381 million relief package through the Unemployment Insurance Fund (UIF).
Meth said the memorandum of agreement between SAPO and the UIF was a “bold and necessary step” to restore public confidence in one of South Africa’s most vital state-owned enterprises.
“Today marks the beginning of a strategic partnership rooted in the protection of workers, economic resilience and the restoration of institutional integrity. The TERS (Temporary Employer-Employee Relief Scheme) programme is not just about funding, it is a strategic tool to stabilise employment, promote recovery and ensure that no worker is left behind,” Meth said.
The deal is designed to safeguard nearly 6000 jobs and support SAPO’s long-term turnaround strategy.
The funding will be disbursed in monthly tranches via a dedicated TERS bank account.
The minister said the process would be underpinned by rigorous governance, with built-in compliance and audit mechanisms to ensure transparency and accountability.
As a condition of the funding, SAPO is required to implement a robust and measurable turnaround strategy.
This includes regular reporting to the department, maintaining clear accounting records and demonstrating progress in organisational restructuring and operational efficiency.
“This partnership represents a proactive, solutions-driven approach to state-owned enterprise reform. We are not merely cushioning the blow, we are building a bridge to sustainability and inclusive growth,” the minister said on Sunday.
She reiterated the government’s broader commitment to social dialogue and cooperation with organised labour and business to address the systemic challenges facing the economy.
Meth said the preservation of jobs must go together with building the capacity of institutions to serve the people, and that with this agreement, the government would stand with workers and not allow critical infrastructure to collapse.
The first tranche of funds is set to be disbursed before the end of May.
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