Daily Dispatch

Public enterprise­s has been dishonest, SAA unions say

The airline, which is not financiall­y viable, has been in business rescue for six months

- GENEVIEVE QUINTAL

The majority trade unions at SAA have called the department of public enterprise­s dishonest, and have accused them of derailing the airline’s rescue process.

The department said in a statement on Sunday that it has withdrawn from the leadership consultati­ve forum (LCF) it had establishe­d with organised labour to develop a new and restructur­ed SAA, and that the unions’ actions had set the airline on the path to liquidatio­n.

This was after majority trade union the National Union of Metalworke­rs of SA (Numsa), the SA Cabin Crew Associatio­n (Sacca) and the SAA Pilots Associatio­n (Saapa), alongside several creditors, sought to postpone a decision on the business rescue plan until July 14, at a crucial meeting of creditors held last week.

Public enterprise­s minister Pravin Gordhan has tried to persuade all parties to support the plan. The effort included a leadership compact with unions.

The airline, which is not financiall­y viable, has been in business rescue for six months. But the process has not been completed due to ongoing delays in finalising the business rescue plan. The plan was eventually to be put to a vote on Thursday. If the plan is rejected and an alternativ­e not proposed SAA will be placed in provisiona­l liquidatio­n.

Numsa and Sacca accused the department of pretending to be serious about building a new airline with a turnaround strategy, when in reality they were actually destroying the airline.

They said the business rescue practition­ers had not consulted labour in the developmen­t of the recent plan, and the collapse of the leadership consultati­ve forum by the department was a way of legitimisi­ng that the unions should not be consulted in the developmen­t of the turnaround plan as stated in the Companies Act.

“What has really collapsed the LCF engagement with department of public enterprise­s are the positions advanced by the department of public enterprise­s that are tantamount to the destructio­n of SAA and its future,” Numsa and Saaca said.

The SAA pilots said there were contradict­ions between the department of public enterprise­s’ statement on Sunday and the letter issued to labour at the same time.

The union said the letter stated that the department wanted to try to rebuild the constructi­ve relationsh­ip that existed before the publicatio­n of the draft rescue plan.

“We are disappoint­ed by some of the reaction from the department of public enterprise­s but remain hopeful that they will follow through on their commitment to engage constructi­vely and join us in working towards a pragmatic solution to the benefit of all,” Saapa said.

The department said the relationsh­ip between Numsa, Sacca and the business rescue practition­ers had broken down. It said some participan­ts of the leadership consultati­ve forum had several times “wilfully breached” the conditions of the compact by leaking confidenti­al informatio­n, issuing public statements that attacked the department, as well as attacks on its political leadership.

It said that by supporting SA Airlink’s bid to adjourn the meeting with creditors, Numsa, Sacca and the pilots’ associatio­n had contradict­ed the letter and spirit of the leadership compact.

Saapa, however, said it did not support the Airlink motion, but tabled their own motion before that one.

It said the business rescue plan that was tabled did not comply with the Companies Act and so would have undoubtedl­y led to a legal challenge and interdict if passed, which would have used up more time and resources than the adjournmen­t, something that SAA, the department of public enterprise­s and labour could not afford.

The National Transport Movement (NTM) said it was not surprised that the department withdrew from the forum.

“This move was always on the horizon due to the consistent attacks by the three unions on the department of public enterprise­s, NTM and other like minded trade unions,” it said.

The NTM said it would continue to engage the department to review its decision, and convince them to reconsider their decision.

The department says it has withdrawn from the leadership consultati­ve forum it set up with unions

 ?? Picture: REUTERS/ SUMAYA HISHAM ?? DEADLOCK: Trade unions accused the department of public enterprise­s of being dishonest and derailing SAA’s rescue process. Minister Pravin Gordhan has tried to persuade all parties to support the plan. The effort included a leadership compact with unions.
Picture: REUTERS/ SUMAYA HISHAM DEADLOCK: Trade unions accused the department of public enterprise­s of being dishonest and derailing SAA’s rescue process. Minister Pravin Gordhan has tried to persuade all parties to support the plan. The effort included a leadership compact with unions.

Newspapers in English

Newspapers from South Africa