- The South African Post Office will have to pay R4.5 million in employees' outstanding medical aid contributions by the end of the week.
- This comes after Solidarity again got relief by the courts compelling the Post Office to pay over deductions from employees' salaries to MEDiPOS.
- Solidarity's Anton van der Bijl thanked the court but said employees should not have to resort to such measures to secure their medical aid services.
- For more financial news, go to the News24 Business front page.
The Labour Court has ordered the South African Post Office (SAPO) to pay R4.5 million in employees' outstanding medical aid contributions before the end of the week.
Trade union Solidarity received an interim judgment in its favour after taking the Post Office to court. The Post Office must pay over employee contributions to the medical aid provider MEDiPOS by the end of this week.
The Post Office has consistently been struggling to cover the arrears in employee contributions since at least last year and has even partially used revenue and sought financial assistance from the government to pay before.
READ | Post Office seeking financial assistance after falling behind in medical aid payments
Deputy general manager of Solidarity Anton van der Bijl said the Post Office has been mismanaged to the point where money deducted from salaries, specifically intended to be paid over, never got out of its bank account.
"These annual court actions to protect people's medical funds and benefits for which they have worked, remain a source of concern. However, the real concern is that employees and former employees are plunged into debt running into hundreds of thousands of rands because Sapo failed to fulfil its responsibilities," said Van der Bijl.
Solidarity accused the Post Office of turning a blind eye to struggling employees and their legitimate questions about the contributions. Van der Bijl said while the union was relieved that the courts reaffirmed the Post Office's responsibility, it should not have to resort to such measures.
"The courts remain the only way to hold the state and its entities accountable, and we will keep doing so. Hard-working people do not deserve being at the mercy of their circumstances. They deserve justice. The courts at least give us this," he said.
READ | UPDATE | Post Office asks govt to help with medical aid arrears, council mulls exemption
Post Office spokesperson Johan Kruger said the current contributions for 2022 owed to Medipos are up to date, specifically the portion deducted from the employees' salaries as well as the two thirds paid by the SA Post Office.
"Only historical debts remain. The medical aid benefits were reinstated on Thursday 13 October 2022. It is important to note that the Post Office has been paying over the one third of the medical aid contribution since 2021 – there have been short payments on the two thirds paid by the employer," said Kruger.
Kruger said the SA Post Office has not received financial assistance from the National Treasury and is currently self-funded.