Johannesburg – 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).
On Sunday, May 18, 2025, Minister of Employment and Labor Nomahosazanames declared the implementation of a signed contract with SAPO and the Unemployment Insurance Fund (UIF).
The minister said the contract was intended to “support the revitalization of one of the most important state-owned enterprises in the country, maintaining almost 6,000 jobs.”
Minister Mess added: “Through the temporary employer and employee relief scheme (TERS), UIF will inject more than R381 million into SAPO over six months.
“This intervention is designed to provide immediate financial relief to five 956 employees, while ensuring SAPO implements a sustainable turnaround strategy.”
She said UIF and SAPO formally signed a series of agreements and established a strategic partnership between the two entities.
“This is a bold and necessary step to protecting workers and restoring confidence in our public institutions,” Minister Mess said.
“The TERS programme is not just a financial mechanism. It is a strategic tool to stabilize jobs, support economic recovery and ensure workers are not left behind.”
The Minister emphasizes that funds will be paid in monthly tranches through a dedicated TERS bank account and implements strict governance, audit and compliance measures.
“SAPO must submit periodic reports, maintain transparent accounting records and implement detailed turnaround strategies as a condition of funds,” she revealed.
“This intervention follows a strict arbitration process by the TERS Single Arbitration Committee (TERS SAC), which includes representatives of the CCMA, the Ministry of Higher Education, the Ministry of Small and Medium Enterprise Development, and other key stakeholders.”
The Minister reaffirmed the government's commitment to working with all social partners to promote inclusive economic growth and protecting the dignity of workers across the country.
