The South African Post Office (SAPO), which has been under business rescue since July 2023, has received crucial financial support to pay its employees after months of severe financial strain. The struggling state-owned enterprise has already laid off 6,000 workers and faced difficulties in meeting salary obligations due to its dire financial situation.

The Department of Labour has approved the release of Temporary Employer/Employee Relief Scheme (TERS) funding to assist SAPO in paying its current workforce. This intervention comes after initial applications for financial aid were rejected, leaving employees in limbo.

“We approached the Department of Labour to make TERS funding available to ensure personnel are taken care of, particularly for immediate salary payments,” a representative stated. “The minister has agreed, and this funding will be instrumental in stabilizing the Post Office during this critical period.”

The Democratic Postal and Communications Union (DEPACU) welcomed the approval of TERS, calling it a “long-awaited intervention” to secure workers’ salaries.

“We welcome the approval, especially after the first application was rejected,” a union spokesperson said. “This ensures employees’ salaries are guaranteed for the TERS period and brings some stability to SAPO.”

However, the union urged the government to do more, including recapitalizing SAPO and addressing workers who have gone nearly seven years without salary increases. They also called for the implementation of the Postal Amendment Act to ensure long-term sustainability and prevent future bailouts.

Malata, a representative involved in the process, emphasized that the ultimate goal is to restore SAPO’s financial health and remove it from business rescue. “We want to make the Post Office financially stable so it no longer relies on government support,” he said.

The approval of TERS funding provides temporary relief, but stakeholders agree that deeper structural reforms are needed to secure SAPO’s future. As the Post Office navigates its recovery, employees and unions remain hopeful that further government intervention will bring lasting solutions.