Post Office shooting itself in the foot as strike prompts e-billing, outsourcing

post officeThe Post Office strike, which is now in its third month, may be having some unintended consequences. According to SAPA, municipalities around the country, fed up with the Post Office strike and their inability to send people invoices by mail, are turning to e-billing, sending electronic account notices to clients and bypassing the mail altogether. Problems with reliability and speed have already encouraged a large number of companies and financial services institutions to skip the Post Office and choose faster and more reliable e-mail to get their bills out. Municipalities have been stalwart Post Office customers, but the never-ending strike is testing even their patience. As municipalities switch to e-billing en masse, they may find that it is far cheaper and quicker than snail mail, and may choose to send e-bills to many customers even after normal mail service resumes. The striking Post Office workers could thus be driving away important customers and ultimately undermining the economic foundations of the Post Office. Strikes for higher wages today may end up in retrenchments down the line. – FD

From SAPA

More municipalities are sending out electronic accounts to clients as the three-month post office strike continues, the SABC reported on Tuesday.

The public broadcaster said Tshwane metro was the latest to resort to using electronic means to correspond with clients.

Private courier companies have meanwhile reported a boom in business as ordinary South Africans and companies use them to ensure delivery of parcels and documents.

Post Office employees are on strike demanding a 15 percent salary hike while casual staff are demanding permanent employment.

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