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

2. We deliver whatever it takes, 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. We deliver whatever it takes, Portfolio Committee key concerns  Number of years employed as casuals  Disparate remuneration and benefits  Working conditions  Career path  Training Level 4 BEE Contributor

4. We deliver whatever it takes, 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. We deliver whatever it takes, 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 Level 4 BEE Contributor *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

6. We deliver whatever it takes, SAPO workforce complement Level 4 BEE Contributor

7. We deliver whatever it takes Optimal labour model for SAPO PermanentPerm PTFlexibleStatus Mail processing 50%20%30%Completed Mail delivery 70%30%In progress Retail70%30%Completed Level 4 BEE Contributor The above ratios are based on SAPO’s operational requirements

8. We deliver whatever it takes, SAPO’s concerns & corrective actions Level 4 BEE Contributor AREAS OF CONCERNCORRECTIVE ACTION Inability of succession planning Absence of equal pay and other benefits for equal work Alleged unfair labour practices by labour broking firms associated with SAPO Loss of the benefit of training effort Lack of consistent branding eg corporate clothing Discipline outside SAPO’s control Use flexible staff as a pipeline for future recruitment and placement purposes Equitable pay and benefits for equal work Termination of labour broker contracts Pool of trained workers for future employment Provide appropriate corporate clothing Discipline within SAPO’s control

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

10. We deliver whatever it takes, Criteria to assess models Level 4 BEE Contributor

11. We deliver whatever it takes, Assessment against criteria YesYes YesYes

12. We deliver whatever it takes, Financial implications Level 4 BEE Contributor Current costFuture cost R280m (Actual)R322m Rationale for additional cost  Equal pay for equal work  Decent working conditions  Corporate clothing  Training  Pipeline for future employment

13. We deliver whatever it takes, Progress to-date and way forward Level 4 BEE Contributor

14. We deliver whatever it takes, Thank you! Level 4 BEE Contributor