By Zuko Komisa
Plans are in motion, according to the South African Post Office, to prevent the parastatal from going under entirely.
In addition to owing the PostBank R3.2 billion, the SA Post Office suffered a loss of R2.3 billion.
The decision to reduce staff compensation has been criticized by employees who claim that the CEO and executive are disrespectful while making millions of dollars.
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Nomkitha Mona, CEO of the SA Post office, explains:
“What we are doing, is we want to introduce what we call a three-day work week. So, it means that instead of having Post Office employees work for five days and getting paid for that, they will now work for three days.
So that will constitute 60% of the work week and that’s where the 40% cut comes from. When we do it, we will not affect the Post Office hours of work.”
The state-owned corporation has reportedly been in a “downward spiral” since 2004, when it last reported a profit, and staff-related costs make up 68% of its overall spending, according to Nomkitha Mona.
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