Deal on jobs may clear way for SAA rescue plan
• Lay-off scheme would secure another 1,000 posts
Majority trade unions at SAA say they have persuaded the department of public enterprises to retain an additional 1,000 jobs at the restructured airline, by using the department of labour training layoff scheme. This is twice as many as provided for by the business rescue plan, which stated that only 1,000 jobs would be retained. The agreement may have cleared the way for all unions to support the business rescue plan, which the plan has specified is a condition to go ahead.
Majority trade unions at SAA say they have persuaded the department of public enterprises to retain an additional 1,000 jobs at the restructured airline, by using the department of labour training layoff scheme.
This is twice as many as provided for by the business rescue plan, which stated that only 1,000 jobs would be retained. The agreement may have cleared the way for all unions to support the business rescue plan, which the plan has specified is a condition to go ahead.
The plan is due to be republished on Tuesday but had not been made available at the close of business.
Until now the majority coalition — the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) — has refused to endorse the plan.
In a note from the two unions on their position, workers are “invited to apply for the voluntary severance package”. Sacca president Zazi SibanyoniMugambi said on Tuesday that this is to enable those who want to leave to do so. But the union’s priority remains to protect as many jobs as possible.
In terms of the offer, which is substantially more generous than statutorily required, no-one will receive less than R200,000. The business rescue plan has estimated the cost to be R2.2bn.
The additional 1,000 employees would remain employed by SAA for 12 months, which would pay their benefits, but 75% of their salary would be paid by the department of employment & labour.
The agreements reached between employees and the department have no legal standing but have previously been incorporated by the business rescue practitioners into the business rescue plan.
The practitioners were expected to republish the plan after the creditors’ meeting held two weeks ago voted to delay deliberation on the plan.
The next meeting is scheduled for July 14.
The plan depends on a number of preconditions being met. Apart from support from the unions, it depends on the Treasury agreeing to fund the restart of SAA, which is anticipated to cost R2.8bn. Additional costs that need to be settled, including retrenchment packages for staff, amounting to another R7.2bn are also to be funded by the government, according to the plan. But it is still unclear whether these funds will materialise.
In last week’s supplementary budget, no new funding for SAA was announced, and Treasury officials said they did not anticipate allocating the airline any further funding.
IN LAST WEEK’S SUPPLEMENTARY BUDGET, NO NEW FUNDING FOR SAA WAS ANNOUNCED