GEORGE NEWS - The South African Post Office (Sapo) has started paying out severance packages to the more than 4 000 employees who were retrenched in April.

Sapo said in a statement on Friday 7 May that payment of the first portion of severance packages is being made. This is early, as payouts were expected to start only at the end of June, as agreed with organised labour and the Employee Committee.

All retrenched staff should see the first tranche of their severance packages reflect in their bank accounts from  the week of 10 June, according to one of the Sapo business rescue practitioners (BRPs), Anoosh Rooplal.

A trusted anonymous source told George Herald that at least two of the retrenched staff members in George have received payouts. Payouts will apparently continue till Friday 14 June.

The source said a small number of local employees' retrenchments was retracted.

Sapo said all payments post business rescue have also been made to the UIF, which is now fully paid up. "Ex-employees can therefore liaise directly with the UIF offices to receive their unemployment insurance benefits. Sars has also been paid their first dividend of 12c in the rand, amounting to some R70m," said Rooplal.

"Ex-employees are requested to continue to liaise with the Post Office Retirement Fund (PORF), in connection with queries and pension payments. The PORF is as separate legal entity and is not in the BRPs' control."

Tranche 2 and 3 payments of the severance packages will be made in September and November respectively, as was agreed with the Employee Committee and organised labour, and previously communicated to retrenched employees.

Rooplal said the BRPs continue to monitor the cash flow position and protect current revenue streams in terms of the business rescue plan.

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