The Unemployment Insurance Fund (UIF) will inject over R381 million into the Post Office to save nearly 6 000 jobs, Employment and Labour Minister Nomakhosazana Meth has announced.
This comes after an agreement was signed by the South African Post Office (SAPO) and the UIF to provide immediate financial relief to 5 956 employees while enabling the post office to implement a sustainable turnaround strategy.
Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R381 million into SAPO over a six-month period.
“This is a bold and necessary step to protect workers and restore confidence in our public institutions. The TERS programme is not just a financial mechanism, it is a strategic tool to stabilise employment, support economic recovery, and ensure that no worker is left behind,” Meth said on Sunday.
The UIF and the post office have formally entered into a Memorandum of Agreement (MOA), marking the establishment of a strategic partnership between the two entities.
The Minister emphasised that the funding will be disbursed in monthly tranches through a dedicated TERS bank account, with strict governance, auditing, and compliance measures in place.
SAPO is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy as a condition of the funding.
This intervention follows a rigorous adjudication process by the TERS Single Adjudication Committee (TERS SAC), which includes representatives from the Commission for Conciliation, Mediation and Arbitration (CCMA), the Department of Higher Education, the Department of Small Business Development, and other key stakeholders.
The Minister has reaffirmed government’s commitment to working with all social partners to drive inclusive economic growth and protect the dignity of workers across the country.
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