HomeAfrica-NewsUnion demands 15% pay rise and government bailout as SA Post Office...

Union demands 15% pay rise and government bailout as SA Post Office plans job cuts

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  • The Communication Workers Union said the South African Post Office was not just mistreating workers, it was mismanaging itself to the point of collapse.
  • Their demands included a 15% general wage increase, a R900 housing allowance and a R2500 housing allowance.
  • The union also demands that Postbank reintegrate with Correos and become a monopoly on the delivery of packages of 1kg or less.
  • For more financial news, go to News24 Business Cover.

The Communication Workers Union (CWU) is demanding that the government bail out the struggling South African Post Office (SAPO) and ensure that the entity has a monopoly on the delivery of parcels weighing 1kg or less.

The union held marches across the country, including the National Treasury and Department of Communications in Pretoria, as well as Parliament in Cape Town. Their demands included a 15% general wage increase, a R900 housing allowance and a R2500 housing allowance.

SAPO has continually fought to pay employee healthcare contributions to healthcare provider Medipos and is likely to consider taking steps to cut staff after this year’s budget speech paved the way for cutting 6,000 or 40 % of their jobs in the medium term. His salary mass represents 61% of his expenses, according to his last annual report.

READ | Correos promises to consult about 40% of the jobs at stake in the cut plans

However, the union’s demands do not begin or end with the pockets of members. The CWU wants legislation to be finalized to make SAPO the only legal service provider for the delivery of parcels of 1kg or less. It also wants the separation of SAPO from Postbank to turn the latter into a completely scrapped bank.

The union’s demands memorandum to the government called for a permanent proportional subsidy for the services provided by SAPO and for the finalization of legislation making SAPO the only legal service provider in the delivery of 1kg parcels.

The union also demands that all state institutions use SAPO as their main service provider for certified mail and parcel delivery.

“We call for Postbank to rejoin SAPO. We also demand a bailout for SAPO considering the plight of the workers,” the memo reads.

READ | Union vows to close post office over unpaid wages and benefits

SAPO spokesman Johan Kruger told News24 that Thursday’s marches had no significant impact on operations at Post Office branches, but that the CWU’s demands will be studied and considered by management.

“About 100 people joined the march in Gauteng and 100 in Cape Town. Postal services are not significantly affected. The Post Office will review the details of the memo and reply to CWU as soon as possible once the memo has been issued. has been delivered,” Kruger said.

In March, Cabinet approved the South African Post Office Amendment Bill and the South African Postbank Amendment Bill intended to modernize SAPO and bring the now separate Postbank one step closer to becoming a full-fledged bank, respectively.

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