Consultation paralysis is what cost SA Airways

The mess was the result of management negotiating in bad faith, writes Morgan Phaahl.

Seemingly, consultation paralysis was the source of the industrial action that cost SA Airways revenue it desperately needs to stay afloat. It was a result of management negotiating in bad faith, using guerrilla tactics against organised labour and plunging the airline into financial distress to affect its credit outlook.

The dismal situation was proof of lack of capable and ethical leadership in the country. It dampens one’s hope amid a disjuncture between the shareholder and stakeholders about the consensus to make the state-owned enterprises’ financially viable.

Not surprisingly, the chief executives of both Eskom and SAA cited political interference as reasons for quitting.

That left Minister of Public Enterprises Pravin Gordhan to appear obstructionist, with his suitability questionable.

Eskom, which also requires a bailout, may follow suit soon, for the common denominator in the strike is the National Union of Metalworkers (Numsa).

It contends that executives of SOEs wasted lot of money without creating employment or contributing towards a developmental state.

Bailouts have paralysed the state from prioritising on stimulating growth to radically advance a meaningful social transformation in communities.

Reprioritisation could have aided small businesses to create jobs and arrest some of the challenges causing the economy to nosedive.