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Strike-hit post office R90m more in the red

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Cape Town - The overdraft on the strike-hit South African Post Office’s current account has jumped by R90m since June to R323m in August, the Minister of Telecommunications and Postal Services Siyabonga Cwele has told parliament.

At the same time, the number of casual workers employed by the post office has dropped significantly in the five months to August when an unprotected strike by casuals demanding full-time employment was at full throttle.

A protected strike started just over two weeks ago just as the unprotected strike ended. Five major strikes in the last five years have cost the post office as estimated R100m in lost revenue.

In reply to a question from Cameron MacKenzie, a DA MP, the minister said as at March this year 7 788 casuals were employed. By August 1 this number had dropped to 7 556. The numbers employed in the Witwatersrand had dropped from 1 902 to 1 820 in this time. In the Western Cape these numbers had, however, risen from 1 154 to 1 158 in the same period.

They also rose in KwaZulu Natal - from 845 to 849. Numbers, however, in the rest of the postal regions dropped slightly.

The bulk of casual workers were employed in mail processing and mail delivery, but there were also significant numbers of casual workers employed in the retail business units. Altogether 1 155 casuals were employed in mail processing as at August 1.  Some 3 482 were employed in mail delivery units.

In reply to another question from MacKenzie, the minister said 473 of the casual employees had embarked on industrial action in August but she said this was restricted to “across Gauteng mail centres and retail offices”.

Asked what were the reasons for the strike action, the minister said casual employees requested full time employment and full benefits “for all casual workers”.

MacKenzie also asked the minister what was the status of the SA Post Office (Sapo) current account overdraft as at June 15, July 15 and August 15 this year.

Cwele replied that as at June 15, the state owned entity had an overdraft of R233m while on July 15 the overdraft jumped to R351m. It dropped to R323m as at August 15.

Asked whether Sapo employee pension funds had been deposited into the current account between January and September this year, the minister said this had not happened and therefore the answer was “not applicable”.

City Press reported that internal emails circulated in the last month addressed to Mike Faasen, the general manager for retirements, tax and treasury, accused the post office of withdrawing over R400m from the pension fund between April and August.

This was also denied by the post office.

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