The South African Post Office’s (SAPO) effort to secure funding from the Temporary Employment Relief Scheme (TERS) to delay staff retrenchments has failed. Despite filing an application with the Commission for Conciliation, Mediation and Arbitration (CCMA) and reaching an agreement with unions, the CCMA rejected the plan, deeming it only a temporary solution. SAPO, which entered business rescue last year aimed to substantially cut its workforce to reduce its annual wage bill by R1.2 billion. Retrenchment notices were issued, effective 30 April 2024. The agreement with unions and government officials proposed using TERS to fund salaries for 12 months while implementing a non-reductive turnaround plan. However, the CCMA concluded that TERS would merely delay inevitable retrenchments. Without TERS approval, the retrenchment notices stand, affecting 4 889 employees. Business rescue practitioners expressed disappointment, emphasising their efforts to provide temporary relief and support for staff upskilling and re-training.
