SA Post Office workers reject 18c-per-rand pension offer, demand full payments

Retrenched employees of the South African Post Office (SAPO) have rejected an offer to receive 18 cents for every rand of their pension entitlements, calling the proposal inadequate and insulting. The workers picketed outside the Department of Communications and Digital Technologies as they pressed for full pension payments and other outstanding benefits.

Workers say pensions unpaid despite deductions

According to The Citizen, many former employees say SAPO deducted retirement contributions from their salaries but did not pay the funds into the pension scheme after retrenchment. One retrenched employee, Jacky Maja, who was dismissed in 2024, told The Citizen:

“Since we were retrenched in April 2024 up until now, we haven’t received our pension funds.”

The Citizen reports workers say they were told the department would pay them when government funds arrived, but that payments were still not made after Treasury disbursed money. The same report quotes employees saying an agreement with unions would leave them with

“18 cents for every R1.”

Workers describe long waits, lost savings and debt

The Citizen records accounts of staff who used pension money to buy delivery vehicles under a company-introduced volunteer service package. One long-serving worker said:

“They introduced a volunteer service package where we took our pension money to buy bakkies to drive for the company.”

After retrenchments, the post office outsourced drivers and those workers say they were left unemployed while still owing vehicle instalments.

One former employee told The Citizen the amount owed to them exceeded R100,000 and said:

“That money owed to us is more than R100 000. They deducted about R1 050 per month and never paid it over.”

The Communication Workers Union did not respond to questions, The Citizen reports.

Wider concerns over unpaid contributions and legal rulings

Separate reporting collated by this article notes SAPO failed to pay contributions into employees’ retirement fund for three years, with an estimated shortfall of R1.44 billion, according to Daily Maverick and GroundUp.

The Supreme Court of Appeal has ordered SAPO to pay monthly contributions to the Post Office Retirement Fund, IOL reported.

Unions, protests and warnings about liquidation

Unions including SAFTU have opposed any move toward liquidation and warned of community devastation if SAPO collapses, drawing attention to broader labour and service delivery consequences, according to reports cited in the briefing. Protests by affected workers have continued as they demand full pension payouts and improved terms.

What workers want

Workers at the picket described the demand simply: they want their pension funds paid in full and for outstanding benefits and salaries to be addressed. The protest actions and public statements by employees underline frustration at long delays and what they describe as inadequate settlement offers.