Labour minister confirms R382 million UIF lifeline to save nearly 6,000 SAPO jobs
Minister of Employment and Labour, Nomakhosazana Meth says nearly 6,000 SAPO workers will receive relief through a R382 million TERS intervention, as government backs a plan to stabilise the troubled state-owned entity.
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THE Minister of Employment and Labour, Nomakhosazana Meth, has confirmed the implementation of a new agreement between the South African Post Office (SAPO) and the Unemployment Insurance Fund (UIF), aimed at preserving nearly 6,000 jobs and supporting the recovery of one of South Africa’s most critical state-owned entities.
Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R382 million into SAPO over six months. The funds will provide immediate financial relief to 5,956 employees while enabling SAPO to implement a long-term turnaround strategy.
“This is a bold and necessary step to protect workers and restore confidence in our public institutions,” said Meth.
“The TERS programme is not just a financial mechanism — it is a strategic tool to stabilise employment, support economic recovery and ensure that no worker is left behind.”
Funds will be disbursed in monthly tranches through a dedicated TERS bank account. Meth emphasised that this will happen “with strict governance, auditing and compliance measures in place.”
She added that SAPO is required to “submit regular reports, maintain transparent accounting records and implement a detailed turnaround strategy as a condition of the funding.”
The agreement, formalised through a memorandum of agreement (MOA), marks the beginning of a strategic partnership between SAPO and the UIF.
Approval of the funding followed a thorough review by the TERS Single Adjudication Committee, which includes representatives from the CCMA, the Department of Higher Education, the Department of Small Business Development, and other key stakeholders.
Chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Sangoni Diko, earlier this month described the relief as “a much-needed lifeline that the state is both morally and duty-bound to extend.”
“The R381,297,863.83 wage subsidy for nearly 6,000 SAPO employees over six months signals an important milestone in the ongoing work to rescue, resuscitate and ultimately future-proof the Post Office,” said Diko “While this funding is significantly less than the R3.8 billion initially sought during the business rescue process, it presents an opportunity for the department and SAPO to make strategic choices about reengineering the institution.”
She stressed that beyond immediate relief, SAPO must leverage this intervention to accelerate digital transformation, develop a comprehensive partnerships strategy, and explore reinvestment in infrastructure and assets to position itself competitively in a rapidly changing communications landscape.
To qualify for the TERS funding, SAPO had to present a turnaround strategy with reasonable prospects of success—a key condition assessed by the adjudication committee. Diko emphasised that the funding should be seen as a catalyst for broader reform and innovation, not just short-term survival.
“This step is steadily moving us toward the end of the business rescue process, thereby presenting an opportunity for the department to accelerate the development of SAPO’s revenue-generating streams,” she said.
Reaffirming government’s commitment to inclusive growth, Meth said: “We are committed to working with all social partners to drive inclusive economic growth and protect the dignity of workers across the country.”