The labour court has ordered the business rescue practitioners of SAA to stop planned retrenchments at the stricken state-owned airline, saying a business rescue plan had to first be presented before employees were invited to consult in such a process.
The National Union of Metalworkers of SA and the SA Cabin Crew Association , which together represent about 60% of the 4,700 employees at SAA, had taken the airline’s business rescue practitioners, Leslie Matuson and Siviwe Dongwana, to court in a bid to stop a retrenchment process involving the entire staff complement.
The case was heard on Thursday, with judge Andre van Niekerk issuing his ruling on Friday afternoon via e-mail. In his summary, Van Niekerk said the “crisp issue” was whether Section 136b of the Companies Act permitted a business rescue practitioner to retrench employees “only as part of a business rescue plan and on presentation of that plan or whether a retrenchment process may be initiated in the absence of a business rescue plan”.
Van Niekerk said the court decided that “on a proper interpretation of S136, a business rescue practitioner may initiate a retrenchment process only once a business rescue plan that contemplates retrenchments has at least been presented”. “In the absence of a business rescue plan, the issuing of notices commencing a consultation process over proposed retrenchments is procedurally unfair,” the judge said.
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