Parliament’s communications portfolio committee on Tuesday said it was satisfied with the stricken SA Post Office’s progress towards stability.
In a statement issued following the presentation of a turnaround strategy by Dr Simo Lushaba, who was brought in by the department last year to rescue the strike-stifled institution, committee chairwoman Mmamoloko Kubayi said MPs had confidence in his leadership.
“Committee members across the political spectrum expressed their appreciation and confidence in the current leadership to steer the organisation in the right direction,” she said.
While the post office had been affected by a steady global decline in mail volumes, which generate over 60 percent of its revenue, the committee was impressed with the financial stability of the Post Bank, which had shown growth.
The post office was paralysed by a strike last year, which caused problems with mail deliveries around the country.
Kubayi said the committee heard on Tuesday that the Communication Workers’ Union (CWU) was still not recognising a signed agreement of a 6.5 percent wage increase, which was signed with two other unions.
“Dr Lushaba reiterated that more efforts were being made to engage CWU to avert a possible strike and build a strong relationship with organised labour in the interest of the post office,” she said.