The National Union of Metalworkers of South Africa (Numsa) and the Cabin Crew Association (SACCA) have rejected the proposed collective agreement from South African Airways Business Rescue Practitioners for mass retrenchments.
The unions say they have not participated in the Section 189 process as there is no business rescue plan yet.
Economists on the other hand say the time has come to shut down State Owned Enterprises that are not profitable.
SAA was put under business rescue in December 2019.
So far the airline has incurred losses amounting to R26 billion in the last six years and received government bailout amounting to R20 billion.
The airline’s business practitioners are proposing the termination of SAA’s entire workforce by the end of April.
This after government denied the airline a further lifeline of R10 billion.
In this video below, government declines SAA’s funding:
The proposal, leaked at the weekend, further shows that – if all goes according to plan – employees will be given severance packages plus a further severance pay calculated at one week’s remuneration per completed year of service.
SAA unions says they will meet with Public Enterprises Minister Pravin Gordhan on Tuesday to discuss proposals to save the airline and reduce job losses.
National Transport Movement President Mashudu Raphetha believes that job losses are inevitable at the airline.
“It is our view that we need to prioritise saving SAA and in this regard NTM will do everything to save SAA, we are aware that 2 268 are going t0 face the possibility of job losses, we are going to ensure that not all of them are retrenched and the meeting will yield positive results.”
Below is a graphic on SAA:
Source: SABC News (sabcnews.com)