Nationwide employees have been left financially stranded because of technical issues surrounding the liquidation of the airline, the union UASA said on Wednesday.

UASA divisional manager Andre Venter said the difficulties arose because the Nationwide group consisted of four subsidiaries, of which only one was under application for liquidation at present.

"Although three of the four... have not applied for liquidation yet, their employees have been sent home as well," said Venter.

He said the workers from Nationwide Support, Nationwide Maintenance and Nationwide Charter now found themselves in a dilemma because they could not apply for benefits.

They technically still remained employed by these subsidiaries, said Venter.

Discuss the way forward

The liquidator, Tshwane Trust, met with unions and former employees in Johannesburg on Wednesday to discuss the way forward and complete formalities like UIF applications.

Venter said the employees from the subsidiaries also had financial responsibilities like medical aid, home loans and vehicle finance.

"(However), their creditors are getting anxious and would not accept media reports and letters from the liquidators to restructure their debt."

Venter said UASA's preferred liquidator, Commonwealth Trust, would lodge a formal application with the labour department to make an exception and pay out the UIF grants of all affected Nationwide employees before the whole process was completed.

(This will be) an interim measure to help these workers survive," he said.

Sapa