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Retrenchments, Wage Cuts To Hit All Employees – SAA Rescue Practitioners

The South African Airways (SAA) business rescue practitioners (BRP) on Monday said all 4,708 employees of the airline would be affected by upcoming talks with unions, retrenchments and wage cuts.

They’ve issued a notice under Section 189 and 189A of the Labour Relations Act.

The notices warn of significant changes to conditions of employment including remuneration and benefits.

SAA business rescue practitioners said initial consultations would be held on Thursday.

The 60-day consultation process in terms of Section 189A of the Labour Relations Act would end on 8 May 2020 but an expedited consultation process ending no later than 8 April has been proposed in an effort to avoid liquidation.

SAA has been struggling to keep its planes in the air and has already cancelled a number of local and international routes.

In a statement, the business rescue practitioners said the airline had experienced numerous financial and business challenges and cumulated losses of some R26 billion over the past six years.

Filled seats on the airline have declined steadily from August last year to a low of 71% in January.

Unions said they have just received the notice and they would issue their responses soon.