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Last week, it looked as though SAA had reached the end of line when its business rescue practitioners (BRPs) were advised that government would not assist the airline with further funding. The BRPs – who said there weren’t sufficient funds to honour salaries beyond April 30 – reacted by extending a collective retrenchment offer to all employees. However, government now claims that a consensus has been reached between it and the unions to ensure that a new financially viable and competitive airline will emerge from the business rescue process.
Public Enterprises Minister, Pravin Gordhan, Minister of Labour and Employment, Thulas Nxesi, and Minister of Tourism, Mmamoloko Kubayi-Ngubane, met with union leaders about the future of SAA via video conference last week. During the meeting it was decided that a consultative forum be established to advance dialogue and consultation on the process ahead and that there would be a sharing of ideas on how best to ensure the well-being of employees.
“The unions agreed that, in arriving at a solution for SAA, some jobs would be lost and that employees that remain will need to sacrifice some of the unaffordable arrangements that have worsened the airline’s financial position. It has also been agreed that social plans will be developed to cushion the effect of losing jobs on the affected employees,” said the Department of Public Enterprises.
However, the department reiterated to the unions that the government was not in a position to provide more capital to SAA and that there could be no dependence on the fiscus. It also invited SAA labour unions to submit proposals on the restructuring of the national carrier and the future of jobs.
Tourism Update contacted SAA’s BRPs for comment but had not received a response at time of publication.
Source: tourismupdate.co.za