The trade union federation believes fresh leadership can help return SAPO to sustainability and create new opportunities through courier services and an expanded Postbank.
Image: Bhekikhaya Mabaso / Independent Newspapers
The Congress of South African Trade Unions (Cosatu) has welcomed the appointment of a new board for the South African Post Office (SAPO), describing it as an important step towards rebuilding one of the country's most recognisable public institutions.
The federation said the appointment answers long standing calls from Cosatu, its affiliate the Communications Workers' Union (CWU), and SAPO employees for "fresh, competent and committed leadership" capable of steering the struggling entity back to stability.
According to Cosatu, years of weak leadership and the organisation's inability to adapt to changing trends in the postal and communications sectors have left the Post Office on the brink of collapse.
"For far too long SAPO has been allowed to deteriorate to a state of near collapse," the federation said.
"The absence of dedicated and fit for purpose leadership has been at the centre of this painful decline in addition to SAPO's failing to keep pace with structural shifts in the postal and communications sectors."
The trade union federation was particularly critical of the business rescue process that began in 2023, arguing that it had failed to produce meaningful results while placing a heavy burden on workers.
Cosatu said the tenure of the Business Rescue Practitioners had delivered "nothing to show beyond retrenching thousands of SAPO employees and plunging their families into absolute poverty and despair, closing hundreds of branches and thus further shrinking its customer base and potential to recover."
It further criticised the fact that workers had gone years without inflation linked wage adjustments, while alleging that the practitioners had ensured "to pay themselves sumptuous fees."
Recent warnings that SAPO could face liquidation have heightened concerns over the future of the state owned enterprise. Cosatu, however, said liquidation was not an option.
"Cosatu will never agree to the liquidation of SAPO. The only liquidation that must take place is that of the BRPs," the federation said.
"It is time that the Department approached court to remove the BRPs and provide the Board with the necessary space and support to ensure SAPO is stabilised and set back upon the path to sustainability."
The federation believes there is precedent for a successful recovery, pointing to the turnaround efforts underway at other state owned enterprises such as Transnet and Metrorail.
"The turnaround of other embattled state owned enterprises from Transnet to Metro Rail proves that they can be fixed and once again contribute to stimulating economic growth and creating jobs with competent management, the removal of criminal and corrupt elements, filling frontline vacancies and recruiting critical skills, and investing in the company's infrastructure and capacity."
Cosatu also highlighted legislative changes that it believes could provide SAPO with new revenue streams. The SAPO and Postbank Amendment Acts, passed by the sixth Parliament, allow the Post Office to expand into the lucrative courier market while positioning it as a one stop centre for public services.
At the same time, the legislation enables Postbank to develop into a fully licensed state bank focused on serving working class and rural communities that often struggle to access mainstream banking services.
"The SAPO and Postbank Amendment Acts passed by the 6th Parliament provide a turnaround plan for both institutions, by allowing SAPO to enter the highly lucrative courier business and to become a one stop shop for citizens to access public services and enabling the Postbank to become a fully licensed state bank aimed at working class and rural residents all too often redlined by the private banking sector," Cosatu said.
Looking ahead, the federation said it would seek urgent engagements with the Ministry and Parliament's Portfolio Committee on Communications and Digital Technologies to secure commitments around job protection, outstanding payments to workers and the implementation of a comprehensive recovery strategy.
"It is critical that Treasury provide the necessary financial support to enable such a turnaround to be implemented as a matter of the highest priority," Cosatu said.
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