Fri. Jul 3rd, 2020

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D-Day For SAA As Fate Of Airline, Employees Will Be Decided

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It’s D-day for South African Airways’ business rescue practitioners to decide what will happen to the struggling airline and its employees.

Last weekend, government and the rescue practitioners agreed to hold off on the signing of retrenchment agreements at the airline until Friday.

The agreement came after the practitioners wrote to employees telling them there were only two options available for the crippled airline: to retrench staff or enter into liquidation.

The SAA business rescue practitioners have asked unions representing workers at the airline to send alternative ideas or queries about their proposal to retrench workers by today.

The rescue practitioners told EWN on Thursday that their offer to retrench all staff and pay them severance packages which would be conditional on the airline disposing of its assets over a six to 24 month period remained on the table.

National Transport Union president Mashudu Raphetha said that government committed this week that a new airline would be established.

“A new airline is going to be established. We are going to be involved in the formation of this new company.”

But Numsa’s Phakamile Hlubi-Majola said that they still believed the airline could be saved.

“The discussions are around a restructured airline, not a new airline.”

If an agreement cannot be reached, the business rescue practitioners can apply for an urgent court order application in the High Court to liquidate the business.

EWN

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