SAA bosses pocket bonuses of R72m

TRANSPORT Unions are threatening to strike after it came to light that SAA will pay R72m in retention bonuses to top management. According to The Transport and Allied Workers Union (Satawu), the bonuses, of which R6,6m have been paid out, have put a damper on current wage negotiation talks. The bonuses were paid out only a year after workers and unions agreed to waive wage increases to bring the airline to profitability. New wage negotiations started in March, with SAA saying it was only prepared to provide an 8% increase. Satawu has declared a dispute, which will go to arbitration on April 30, after which the union will consider strike action. SAA general manager of resources, Bhabhalazi Bulunga, has responded by saying that the airline is committed to negotiating with the trade unions to come to an agreement that will be in the best interests of employees and the airline. “It should be borne in mind that South African Airways is still in the midst of a deep and fundamental restructuring process that started in March last year, aimed at restoring the airline to sustainable profitability.” Bulunga also said that, to date, SAA had signed contracts with 128 managers and specialists at a cost of R6,6m to retain the necessary skills and experience to ensure the restructuring was successfully completed. Managers will have to repay these retention premiums should they opt to leave before the contract period expires and they have to satisfy the performance expectation and targets. “Payment of a retention premium is normal business practice in companies faced with the potential loss of experienced, skilled, dedicated and knowledgeable individuals while undergoing a process of restructuring.” Jeanette Phillips (jeanettep@nowmedia.co.za)