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Bailout not enough for Post Office rescue: Union

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The Democratic Postal and Communications Union (Depacu) deputy general secretary, Eric Khumalo believes the R2.4 billion taxpayer bailout for the South African Post Office (Sapo) is not enough to rescue the entity.

This after the ruling by the High Court in Pretoria that granted the government’s application to place the South African Post Office under business rescue. This curbs the ongoing liquidation proceedings and paves the way for a bailout.

Sapo was placed under provisional liquidation in February due to its failure to pay rent and other liabilities. Khumalo says they welcome this move and believe it will not lead to retrenchments.

“We welcome the business rescue. However, we are standing firm on our position, we are saying no to retrenchment of seven thousand employees. If the business rescue comes to that place then our position is very clear that we are not moving in that direction of retrenchment of worker. However, I just want to add that the R2.4 billion that has been given to post office, we welcome it with both hands. [We believe] that it will make a difference in the post office. We still believe as the post office that we still need more from the government.”

The video below is discussing issues related to SA Post Office:

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