Business Live reports that executives at the SA Post Office (Sapo) have bemoaned the high and unsustainable cost base at the cash-strapped parastatal, especially salaries and perks, which gobble more than 70% of its revenue. Sapo executives told MPs on Tuesday that a process was under way at the parastatal aimed at reducing staff numbers and increasing productivity.
In addition to the possible retrenchments, the contract it signed with the SA Social Security Agency (Sassa) for the payment of social grants to approximately 11-million beneficiaries, would go a long way towards putting it on sound financial footing. In a submission to members of parliament’s communications portfolio committee on Tuesday, the company’s executives said that the restructuring would be done in a phased approach. About 776 employees will be leaving the organisation at the end of November 2019 through voluntary severance packages. Employees were invited to apply for the package in October and a total of 2,839 quotations were requested.
by Bekezela Phakathi