SA Post Office Strategy on Labour Broking Presented to the Portfolio Committee on Communications

1. SA Post Office Strategy on Labour Broking Presented to the Portfolio Committee on Communications Date: 21 August 2012

2. AGENDA • Portfolio Committee’s key concerns • Strategic and business requirements • Various forms of workforce • SAPO workforce component • Optimal labour model for SAPO • SAPO concerns and corrective action • Various models researched • Criteria to assess models • Assessment against criteria • Financial implications • Progress to date and way forward Level 4 BEE Contributor

3. Portfolio Committee key concerns • Number of years employed as casuals • Disparate remuneration and benefits • Working conditions • Career path • Training Level 4 BEE Contributor

4. Strategic and Business requirements • Daily fluctuating volumes exceeding crewed volumes, requiring daily alignment of resources. • Seasonal volumes and/or workload trends repeating themselves over monthly, quarterly, etc. in turn requiring alignment over stretched periods. • Flexible and extended hours worked by branches for specific activities such as pension pay-outs. • Strategic projects which are part of the SA Post Office mandate such as the address expansion programmes, require once-off large numbers of staff for a limited period • Retail network roll-outs which require permanent staff in newly rolled-out branches Level 4 BEE Contributor

5. Various forms of workforce • Definitions • Permanent employees: Full time employees • Permanent part timers: Permanent employees working less than 8 hours per day, for example, four hours per day • Flexible labour: • *Fixed term contractors: Employees with a fixed term contract • Owner drivers: Utilised during high volume times using own transport for deliveries and collections • ˚Agents: Independent agents contracted from within their communities primarily to service rural and underdeveloped areas in both Mail and Consumer services • Casuals: Employed via a labour broker on a temporary basis due to seasonality trends, absenteeism , etc *Fixed term contractors are sometimes referred to as S32’s. This has no meaning as it refers to a form number where details of fixed term contractors were recorded on. These employees are included in the full time employee numbers Level 4 BEE Contributor

6. SAPO workforce complement Level 4 BEE Contributor

7. Optimal labour model for SAPO The above ratios are based on SAPO’s operational requirements Level 4 BEE Contributor

8. SAPO’s concerns & corrective actions Level 4 BEE Contributor

9. Various models researched • Capability management programme • Outsourced non-core ops staff to dedicated management company • Seen as successful model in industry SOE There is no single best practice flexible labour model. However, large and dispersed companies adopt flexible labour models suitable to their operational requirements • Attempted labour broking but was detrimental to quality • Provides training and development for tellers • Casuals seen as first pool for permanent employment Banking • Casuals drawn primarily at extended hours, once permanent staff leave for home • Provided highly regarded training • Casuals seen as first pool for permanent employment Retailing Level 4 BEE Contributor

10. Criteria to assess models Level 4 BEE Contributor

11. Yes Assessment against criteria

12. Financial implications • Rationale for additional cost • Equal pay for equal work • Decent working conditions • Corporate clothing • Training • Pipeline for future employment Level 4 BEE Contributor

13. Progress to-date and way forward Level 4 BEE Contributor

14. Thank you! Level 4 BEE Contributor