The Business Rescue Practitioners at South African Airway (SAA) have been ordered to withdraw their retrenchments consultation notices.
The Labour Court in Johannesburg has found the issuing of the notices to have been procedurally unfair.
The court has ruled that the practitioners must provide a proper business plan for retrenchments to commence.
National Union of Metalworkers of South Africa (Numsa) and Cabin Crew Association (Sacca) had taken the practitioners to court over the matter.
“The Labour court has ordered the retrenchments at SAA to be withdrawn until a Business Rescue Plan is submitted. The court also found consultation process commenced by the BRP’s in March is unfair because they issued a Section 189 before business rescue plan was submitted. The BRP’s have been further ordered to stop the retrenchment consultations and have the entire process suspended.”
NUMSA and SACCA have won their urgent court application to stop retrenchments at SAA at the Labour Court@SAFTU_media #SaveSAA#SAVEourSOEs https://t.co/d9Lxw47Ovv
— NUMSA (@Numsa_Media) May 8, 2020
Unions unhappy with retrenchments at SAA
Unions representing workers at the troubled SAA have repeatedly made their position clear, that they reject plans to implement retrenchments.
The embattled national carrier has been in voluntary business rescue since December 2019.
SAA woes worsened after government rejected a request for further financial assistance in April.
SAA employees praised
Public Enterprises Minister Pravin Gordhan has lauded the role played by South African Airways (SAA) staff in efforts to rescue the airline.
Gordhan has said, in discussions with trade unions, the workers have agreed to take salary cuts of up to 40% to ensure SAA’s survival.
The Minister briefed the joint Portfolio Committee on Public Enterprises and the Select Committee on Public Enterprises and Communications during a virtual joint meeting on Wednesday evening.
Below is the Minister’s briefing:
Below is SAA fact sheet:
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