South African Airways (SAA) business rescue practitioners have given unions and employees until next Friday to accept their staff termination proposal.
SAA issued the draft proposal to terminate contracts after government refused to provide further funding in aid of the airline’s business rescue proceedings.
It seems like the end of the road for SAA.
Business rescue practitioners, Les Matuson and Siviwe Dongwana issued unions and management notices to terminate the contracts of all staff.
SAA, which employs 4,708 workers, said it will have to sell its assets in order to pay out severance packages.
These include property which may be disposed of between six to 12 months, aircraft parts which could take up to two years to be offloaded, and trade debts which may be collected – depending on the financial position of the debtors.
Employees who agree to the deal will receive one week’s remuneration for every year of service, one month’s pay in place of notice pay and payment for outstanding leave; as well as a pro-rated 13th cheque.
Unions have yet to respond.