Post Office to cut staff salaries by 40% while CEO gets a salary of almost R4 million

18 January 2023

Note to editors: Please find attached soundbite by Dianne Kohler Barnard MP.

The DA has been reliably informed that the South African Post Office (SAPO) aims to cut staff salaries by 40% as of next month – while their looting of staff medical aid and pension contributions is ongoing.

Medical Aid benefits have once again been withdrawn from both staff and pensioners because of non-payment – despite the fact that the staff lose that amount from their salaries and pensions each month.

This is despite management assurances to the Communications Portfolio Committee that they would turn things around.

We have also learnt that the current CEO today earns nearly R4 million per year, almost twice as much as her predecessor did in 2020. The CEO earns R3.9 million and the non-executive board members also live in the lap of luxury with a collective annual amount of R2.7 million.

It has additionally been revealed to the DA that the SAPO has this year so far incurred a loss of R2.3 billion whilst still owing the Post Bank R3.2 billion.

In an attempt to cut costs, management are considering cutting hours of work, effectively meaning the cutting of salaries. The SAPO management proposes a 2-day weekly reduction, which would result in shift workers who work 5 days a week working just 3 days and those who work 6 days a week working 4 days. The upshot of this is a stunning 40% gross salary reduction.

This is nothing more nor less than constructive dismissal.

If such a criminal move should go ahead, the DA will be reporting this to the Public Protector, CCMA and the Department of Labour. Meanwhile, I am assured that the Hawks investigation into the non-payment of staff contributions to the medical aids, pension and UIF is at an advanced stage.

Issued by Dianne Kohler Barnard, DA Shadow Minister of Communications, 18 January 2023