SAA pilots reject a final settlement offer
Business rescue practitioners warn deal will expire once business rescue process ends
The business rescue practitioners of SAA have made a final settlement offer to pilots who are both on strike and locked out, warning them that once the business rescue process ends the offer expires. However, pilots belonging to the SAA Pilots Association have decided to take their chances, and if the rescue ends, they say they will pursue their claims with the new board and management of SAA.
The business rescue practitioners of SAA have made a final settlement offer to pilots who are both on strike and locked out, warning them that once the business rescue process ends the offer expires.
However, pilots belonging to the SAA Pilots Association (SAAPA) have decided to take their chances and if the rescue ends, say they will pursue their claims with the new board and management of SAA.
The dispute is taking place as the business rescue draws to a close. The rescue practitioners had hoped to wind it up by end March. They say it is not necessary to resolve the dispute with the pilots to complete the process. Pilots have been locked out since December and embarked on a strike last week.
By striking they aim to prevent the use of any replacement labour, which they believe is not allowed, an interpretation of the Labour Relations Act with which the business rescue practitioners disagree.
The practitioners need to use pilots — either SAAPA members or others — who are qualified as trainers to provide training to pilots before they can fly again, a necessary requirement after a long break. They have continued in their efforts to recruit replacement labour, prompting SAAPA to file an interdict with a court to bring a stop to their efforts, spokesperson Grant Back said on Monday
The offer made by the business rescue practitioners to pilots includes the payment of unpaid salaries from April to November 2020, notice pay, leave pay and a 13th cheque. They have also said they will pay pilots’ retrenchment packages over the next three years, out of the new SAA revenue.
SAAPA has rejected this offer, describing it as unfair as all other employees have been paid out a generous severance package. Pilots have a minimal package in line with requirements of the law, which is not guaranteed
due to the uncertainty surrounding SAA.
“We are saying pay us what you owe us. Stop trying to starve us out. We are not going to be subjected to this kind of prejudicial treatment,” said Back.
However, the business rescue practitioners have warned
that should the rescue process end, pilots will have to negotiate with the new SAA afresh.
In a letter to all pilots on Friday they again urged SAAPA to take the payments being offered. Had they accepted the offer “the pilots would be receiving R704m this week and a further
R182m during the course of next week, with the balance of exgratia and severance payments being made over the next three years, with the first payment in the amount of R71m being paid in August 2021”, the business rescue practitioners said.