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Take SAA Severance Package Or Risk Liquidation: Department To Unions

The Department of Public Enterprises has made it clear that unions have two choices, either accept the severance package offered by the South African Airways (SAA) or take their chances with liquidation.

The department on Thursday said it had given everything it could to the voluntary severance packages and would not consider the union’s demands, which it called unreasonable.

Three of SAA’s biggest unions have rejected the voluntary severance packages offered by the broke airline.

With SAA in severe debt and under business rescue, it appears inevitable that jobs will be lost.

The department said it was offering voluntary severance packages to workers to soften the blow for those who stand to lose their jobs.

But without SAA’s three biggest unions still not willing to sign on the dotted line, it is unclear where this leaves the SAA business rescue process.

Now, the department and SAA’s biggest three worker unions seem to be headed towards yet another confrontation.

The department said it won’t be entertaining any more unreasonable demands from the National Union of Metalworkers of South Africa, South African Cabin Crew Association and South African Airways Pilots Association.

This comes ahead of a crucial business rescue meeting when voting will be taking place on 14 July.

The department and unions are on opposite sides on the way forward for the airline.

Meanwhile, the Department of Public Enterprises said it had offered everything it can to the unions.

Both sides have to wait for the business rescue voting meeting in two weeks to see what will happen to the national carrier.