Comair backs down on employees’ medical aid
But Numsa to meet with management and business rescue practitioners over unpaid salaries
THE NATIONAL Union of Metalworkers of SA (Numsa) said yesterday that it had reached a settlement with business rescue practitioners (BRPs) at Comair, which owns Kulula.com and is the local operator for British Airways, over employees’ medical scheme contributions.
However, Numsa said it would be meeting management and the BRPs today to discuss salaries in an effort to resolve that issue.
Numsa filed papers at the Johannesburg Labour Court last Thursday applying for an urgent interdict to compel the management of Comair to pay outstanding salaries and to continue to make medical scheme contributions for employees at the airline.
Comair filed for voluntary business rescue proceedings in May as Covid19 disruptions hit its already strained finances.
Comair has not paid its employees their salaries since June 1 after it imposed unpaid leave on its workforce, Numsa said.
The airline had agreed to reinstate the medical scheme contributions effective immediately, the union said.
Last week, the BRPs told employees that the company would no longer be making any more contributions from September 1.
Numsa national spokesperson Phakamile Hlubi-Majola said yesterday: “We met with the attorneys over the weekend, and they confirmed that Comair would be reinstating the medical aid for August, September, October and November 2020.”
Hlubi-Majola said that if the proposed business rescue plan, which was scheduled to be voted on September 18 was adopted, the post-commencement funding would cover the medical scheme contribution until the end of November. “Given that this was the primary reason for going to court, we have decided to withdraw the urgent application from the Labour Court,” Hlubi-Majola said.
With regard to salaries, Hlubi-Majola said in the proposed rescue plan the BRPs wanted employees to waive the right to receive salaries until the end of November.
“This is something which we were never consulted on. In terms of the Companies Act, we should have been consulted, particularly as changes in the terms and conditions of employment can never be imposed by management. We want to find solutions, but if the engagement fails, we do not rule out returning to court in order to enforce our rights,” Hlubi-Majola added.
Comair said last week that it hoped to begin flying again in December.
The group said it needed additional R1.4 billion in funding to implement the adopted business rescue plan, and this would comprise R600 million in net new debt. Comair also said it would need 400 members of its workforce to restart operations.
Comair said its fleet would comprise 20 aircraft of which 17 would be next-generation Boeing 737-800s and the remaining three Boeing 737-400s.
“This fleet mix increases the proportion of owned aircraft, which limits exposure to foreign currency risk. The aircraft will gradually return to service from December with a seven-month ramp-up period until June 2021,” said Comair.