Struggling SA Post Office Gets R381M UIF Lifeline to Save Jobs

The struggling South African Post Office (SAPO) has received a much-needed lifeline – a massive cash injection of R381 million from the Unemployment Insurance Fund (UIF) – that will help save thousands of jobs.

Employment and Labour Minister Nomakhosazana Meth formally on Sunday, 18 May 2025, anounced the implementation of the signed agreement between SAPO and the Unemployment Insurance Fund (UIF).

The minister said the agreement was aimed at “preserving nearly 6 000 jobs and supporting the revitalisation of one of the country’s most critical state-owned entities”.

Minister Meth added: “Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R381 million into SAPO over six months.

“This intervention is designed to provide immediate financial relief to 5 956 employees while enabling SAPO to implement a sustainable turnaround strategy.”

She said the UIF and SAPO have formally entered into a Memorandum of Agreement, establishing a strategic partnership between the two entities.

“This is a bold and necessary step to protect workers and restore confidence in our public institutions,” said Minister 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.”

The minister emphasised that the funding will be disbursed in monthly tranches through a dedicated TERS bank account, with strict governance, auditing, and compliance measures in place.

“SAPO is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy as a condition of the funding,” she revealed.

“This intervention follows a rigorous adjudication process by the TERS Single Adjudication Committee (TERS SAC), which includes representatives from the CCMA, the Department of Higher Education, the Department of Small Business Development, and other key stakeholders.”

The minister reaffirmed the government’s commitment to working with all social partners to drive inclusive economic growth and protect the dignity of workers across the country.