Numsa (National Union of Metalworkers of SA) has denied that an agreement has been reached to shut down SAA and form a new airline.
The union referenced media reports that appeared yesterday (April 29) that the National Transport Movement (NTM) had said a decision to shut down SAA and form a new airline had been reached, following a meeting between SAA unions and Public Enterprises Minister Pravin Gordhan. According to the reports, all SAA employee contracts would be terminated, with government sourcing R2,2bn in funding for severance packages. Current airline staff would then be given preference for employment in the new airline.
Numsa took to social media to deny the reports: “NTM is incorrect. There is no agreement on the establishment of a new airline. Labour is engaging on a restructured SAA. A new airline would mean that SAA is liquidated and Numsa and Sacca do not support that.”
A joint statement by Numsa and Sacca advises that a constructive meeting had taken place on Tuesday (April 28) between Minister Gordhan and the unions to avoid the liquidation of both SAA and SA Express (which was placed into provisional liquidation this week) and to find “the most optimum” solution to SAA’s and SAX’s current challenges, with a view to ensure their continued existence.
The unions stressed that the next 24 hours of negotiation would be crucial and urged airline employees not to succumb to pressure to accept retrenchment packages and relinquish their rights.
“Further engagements will continue between Labour and Government on a technical and legal basis to find an appropriate solution… towards the finalisation of a Business Rescue Plan capable of adoption by all stakeholders,” the statement said.
SAX in provisional liquidation
SAX was placed in provisional liquidation this week after the airline’s business rescue practitioners filed an urgent court application to this effect. Provisional liquidation means that affected parties have an opportunity to contest the court order before a liquidator is appointed.
“We have specifically raised this issue [of SAX’s provisional liquidation] with the Minister and are satisfied that there is a commitment from government to work with the unions to find a sustainable solution before the first week in June when the court will decide as to whether or not SAX will be placed in final liquidation,” the union statement says.
