EWN reports that the Communication Workers Union (CWU) has welcomed the news that the South African Post Office (SAPO) is on its way to formally exiting business rescue. Business rescue practitioners approached the Pretoria High Court to end the process, saying that SAPO is no longer technically insolvent and has implemented its rescue plan. The Post Office has reduced its losses from R514 million to R71 million.

CWU spokesperson Thami Mzileni said the union welcomed the news, not least because there were elements of the business rescue process it found concerning. “The thing that we have seen, in our view, the business rescue itself became one of the milkers of the cow; quite concerning,” he said. However, the union has supported the appointment of a new board and the SAPO’s improved financial position. “The appointment of the new board to take over and the declaration of the post office as technically not insolvent, so that it can run its affairs, is greatly welcomed by us.”

SAPO’s financial recovery has been driven largely by severe cost-cutting measures. More than 4,300 employees were retrenched during the business rescue process, and 366 post office branches were closed. At the same time, creditor debt was reduced from R8.7 billion to R440 million, with more than 99% of approved creditor payments completed. Mzileni said workers who are still owed money should be among the new board’s top priorities.

“Firstly, we want to see the post office being able to pay the debts it owes to the workers.” The union believes the Post Office needs to reinvent itself if it hopes to survive long-term. Mzileni said SAPO can no longer rely solely on traditional mail services and must adapt to changing technology and consumer needs. “A second priority would be to see the post office being transformed from just a mail delivery post office, entering into the digital space so that it can compete properly with other competitors that exist.”

He added that government departments can play a major role in helping SAPO become financially sustainable.”If all government departments, both national and provincial, use 30% of their business not to private couriers but utilise the post office, that will see the post office becoming financially viable.”

by Sara-Jayne Makwala King