UIF's lifeline for SA Post Office workers

Partnership aims to protect nearly 6000 jobs

- HOPE NTANZI and THAMI MAGUBANE

THE Unemployment Insurance Fund (UIF) has entered into a multi-million rand deal with the South African Post Office (SAPO) that could help stave off the immediate loss of thousands of jobs at the state-owned entity.

Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R381 million into SAPO over a six-month period.

While the move has been welcomed by some labour unions, an economist is doubtful that it will have any significant long-term impact on improving the fortunes of the post office.

Employment and Labour Minister Nomakhosazana Meth said the implementation of the signed agreement between SAPO and the UIF was aimed at preserving nearly 6 000 jobs and was a “bold and necessary step to protect workers and restore confidence in public institutions”.

The UIF and SAPO have formally entered into a Memorandum of Agreement (MOA), marking the establishment of a strategic partnership between the two entities.

“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,” Meth said. The minister explained 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.