The Department of Public Enterprises says they have noted media reports suggesting that South African Airways (SAA) is about to make full-scale retrenchments, and wish to put on record that no such agreements have been concluded. The department says in a statement the public will be informed of any significant developments regarding SAA.
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 shareholder 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.
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Earlier, Business Rescue Practitioners of (SAA) tabled a proposal to terminate the employment of SAA workers and offered severance packages at the end of April to the entire staff.
According to the proposal, employees will be given severance packages plus a further severance pay calculated at one week’s remuneration per completed year of service.
The leaked document contains details of negotiations between SAA business practitioners and unions.
SAA, for how long can we take the excuse of these SOC’s being hollowed out and looted by the previous administration? When will those in power be held accountable for their failure to rescue the SOC’s ?
— #TheLordOfTheMedia (@samkelemaseko) April 18, 2020
If the proposal goes ahead, some employees will also be entitled to a pro-rated 13th cheque. The severance package will include all pension benefits. Employment of all employees would be terminated by mutual agreement due to the company’s operational requirements on 30 April, 2020. The termination will include all employment contractual obligations, except for those who have to finalise company obligations like intellectual property and trade.
Unions and SAA business practitioners say they will not comment as the proposal is yet to be agreed on and finalised.
SAA and our business rescue practitioners have made the difficult decision to temporarily suspend our commercial operations at all our offices throughout the world, effective Friday, March 27 through April 16, 2020.
For more info visit: https://t.co/P3QqWet95q pic.twitter.com/pTinH2jLCz
— SouthAfricanAirways (@flySAA_US) March 26, 2020
Source: SABC News (sabcnews.com)