Post Office bailout in jeopardy as workers prepare to down tools

The SA Post Office bailout of R2.7-billion is in jeopardy as members of the Communication Workers' Union prepare to down tools over wages.

The Post Office is expected to take yet another knock as it attempts to raise the final amount required to make up the billions needed to save the state entity.

The union is preparing to go on strike over unmet wage demands tomorrow.

Speaking to The Times yesterday, Post Office CEO Mark Barnes said the strike could scupper the parastatal's revival.

He said: "The Post Office is in the final stages of raising the rest of the money we need for a turnaround. These gains would be jeopardised by a strike or any other form of interruption.

"If the strike goes ahead we will lose our clients and their confidence in us and they will go elsewhere at any cost. What we need to be demonstrating now is that we are stable and working.

"We have communicated to the unions and all our employees that we remain committed to addressing these issues as soon as we have been able to raise the requisite funding," Barnes added.

In 2014 the Post Office lost close to 30% of its revenue due to the loss of customers as workers went on strike for three months.

Barnes said it had not met all the workers' demands from 2014 due to financial constraints, which were now being addressed.

Communication Workers' Union president Clyde Mervin said the Post Office owed its workers a salary increase for the past two years .

He said: "The Post Office is sabotaging itself by not paying its workers in order to ensure that the organisation functions properly. The cost of living is increasing and the salary of workers at the bottom of the food chain remains the same."

He said the strike was protected and the Post Office had been notified that 90% of its workers would be downing tools over the wage demands.

Mervin said the onus was on the government to bail out the parastatal. Mervin also called for the overhaul of the Post Office's systems and infrastructure, saying employees were working under conditions that were too stringent.