The SA Post Office (SAPO) has been ordered by the Labour Court to pay R4.5m in employees’ outstanding medical aid contributions to medical aid provider MEDiPOS by the end of the week, after trade union Solidarity took it to court and received an interim judgment in its favour.
The Post Office has struggled, since last year, to cover the arrears in employee contributions and has previously even partially used revenue and sought financial assistance from the government, reports News24.
Solidarity deputy general manager Anton van der Bijl said SAPO has been mismanaged to the point where money deducted from salaries, specifically intended to be paid over, never got out of its bank account.
He said while the union was relieved by the court’s decision, it should not have to resort to such measures.
Post Office spokesperson Johan Kruger said the current contributions for 2022 owed to MEDiPOS are up to date, specifically the portion deducted from the employees’ salaries as well as the two-thirds paid by SAPO.
“Only historical debts remain. The medical aid benefits were reinstated on 13 October 2022. It is important to note that the Post Office has been paying over the one-third of the medical aid contribution since 2021 – there have been short payments on the two thirds paid by the employer,” said Kruger.
Kruger said the SA Post Office has not received financial assistance from the National Treasury and is currently self-funded.
See more from MedicalBrief archives:
Medical aid not yet reinstated for anxious SA Post Office staff
Post Office medical aid settlement agreement reached, says Solidarity
Post Office workers and pensioners face loss of medical aid cover