Talks between South African Airways (SAA) rescue practitioners and unions will resume on Monday. According to the rescue practioners’ proposal, SAA is offering severance packages to its entire workforce of around 5 000.
Below is the full statement from the African Pilots of SAA, asking for the airline to be saved:
Collective Agreement 17042020(1761919 1) (003) (00000003) Pdf (Text)
The move comes after government said it wouldn’t provide more funds for the airline’s rescue efforts.
There’s no agreement on the proposal, which has been put to trade unions.
In the video below, government says that it will not be providing SAA with financial relief.
The proposal is the latest sign that state-owned SAA is on the brink of collapse. SAA was placed under voluntary rescue in December. Since then, it has suspended all commercial passenger flights due to the global coronavirus pandemic.
Two unions have confirmed that the proposal has been made and say they will discuss it with their members.
An SAA spokesperson has declined to comment.
The Department Public Enterprises, which oversees the airline, says no agreements have been concluded about potential mass retrenchments as talks with creditors and unions continue. In a statement, it says the public will be informed of any significant developments regarding the South African Airways.
The department says they have noted media reports suggesting that SAA is about to make full-scale retrenchments, and wish to put on record that no such agreements have been concluded.
The Ministry says under the stewardship of Business Rescue Practitioners, who have in the past four months been engaged in attempts to rescue and restructure the airline, creditors, unions and the shareholders were consulted.
The department further states that government is committed to a dynamic and viable aviation sector that will serve as a contributor to a number of sectors of the economy, including tourism, and also serve other commercial needs of the country.
In the video below, MPs say those responsible for SAA’s financial woes should be brought to book: