The SA Post Office (SAPO) has not announced plans to retrench employees as part of its current program of reducing labour costs in line with its business turnaround strategy. Despite the fact that the percentage labour costs ratio is high, the reports of planned retrenchments are incorrect and the organization is instead implementing several alternative labour costs containment and reduction measures.
SAPO has, in consultation with employees and the unions, embarked on a program in which it has offered voluntary severance packages to qualifying employees and 776 applications have been approved. The total severance packages cost is R130m and the annual savings on labour costs through this program is R204m.
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