SAA receives a further R5 billion from govt to pay laid-off workers

South African Airways (SAA) has received a further R5 billion from the Public Enterprises Department to enable the airline to complete severance payments that form part of its voluntary business rescue plan.

SAA entered into the plan in December 2019.

This happened after a decade of financial losses. The airline’s fortunes worsened after it grounded flights because of the coronavirus pandemic.

Liquidation

Earlier this month, the National Union of Metalworkers of South Africa (Numsa)  rejected suggestions that SAA should be liquidated, saying the national carrier can be a viable business.

This comes after the Organisation Undoing Tax Abuse (Outa) reiterated its stance that SAA be liquidated because it believes the airline does not have a plan to keep it financially sustainable.

The Department of Public Enterprises has announced that SAA could exit administration later this month and a decision on an equity partner for it could be made by the end of March 2021.

Judgment reserved

Days before, the Labour Court in Johannesburg reserved judgment in the case regarding the dispute between unions and SAA Business Rescue Practitioners.

Numsa and the South African Cabin Crew Association (SCCA) in January filed an urgent court application to declare unlawful the practitioners’ decision not to pay union members their salaries.

The unions want the practitioners to pay outstanding three months’ salaries to their members.

The video below is about SAA unions filing urgent wage application at Labour Court in January:

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Additional reporting by SABC News.