Final chance for SAA staff to respond to retrenchments letters

Business Rescue Practitioners at South African Airways says it could start retrenching staff from May 12 if unions and workers do not accept a proposed severance deal.

South African Airways (SAA) entered a local form of bankruptcy protection in December in a last ditch effort to either save or liquidate the national carrier, which has not turned a profit since 2011.

The national carrier has cost Treasury more than R20 billion in bailouts over the past three years.

BRP’s Les Matuson and Siviwe Dongwana say, in a letter to employees, seen by the Reuters News Agency, states that if labour do not accept the agreement, the BRPs reserve their rights to offer retrenchment packages to all employees between May 8 and May 11.

The letter also adds that: “Where agreements have not been reached, … those employees’ employment may be terminated for operational reasons on or after 12 May.”

The BRP’s also say they will oppose the application by the two unions in court because “if successful, it would further contribute to the financial and other challenges that SAA is facing.”

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 last year.

SAA woes worsened after government rejected a request for further financial support.

The video below, looks at challenges facing SAA

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