By Lehlohonolo Lehana.
The embattled South African Post Office (SAPO) is set to launch another round of retrenchments after giving a notice in terms of Section 189 and 189 (A).
Section 189 of the Labour Relations Act allows an employer considering large-scale dismissals to undergo a consultative process to determine whether such dismissals are deemed necessary to keep its operations going.
The Post Office launched a two-phase approach to retrenchments aimed at reducing costs like the company’s salary bill, which accounts for 61% of its total expenditure.
Phase one of the retrenchment process saw 668 job cuts in 2021, reducing the workforce from 15,826 to 14,460. (Beyond planned retrenchments, the Post Office workforce was also reduced through resignations, dismissals and the expiration of fixed-term contracts).
The Post Office is now pressing ahead with the second phase of retrenchments in which the company is aiming to slash at least 600 more jobs.
But this number has been disputed by trade unions representing Post Office employees, saying the company plans to lay off as many as 6,000 employees – or 41% of its current workforce.
CWU general secretary Aubrey Tshabalala said SAPO “dropped a bombshell at the doorstep of the union by giving a notice in terms of Section 189 and 189 (A), which means it intends to dismiss 6 000 workers.”
Tshabalala said this happened a week after the Post Office called a meeting with unions to discuss salary cuts of 40% and work-hour reductions.
National Treasury sees the Post Office operating with a staff count of 10,254 by 2024/25 as the declining nature of its operations requires fewer employees.
Trade unions have interpreted Treasury’s projected reduction in the workforce as preparations for mass retrenchments.
The Post Office reported a financial loss of R2.2-billion during the year to the end of March 2022. The company has been reporting financial losses for 15 consecutive years.
Postal companies around the world are struggling to reinvent their operations for a world in which consumers rely far more on electronic methods of communication than they do on mail. People are also opting for faster, more efficient parcel delivery services run by private sector companies.