Airline brought back from the brink as rescue practitioners and Gordhan agree to work on a rescue plan by the end of June
Jobs saved; retaining only 25 Airbus aircraft that will operate select domestic, regional and international routes; and a renewed interest from buyers in the United States. These factors are part of a new plan to keep state airline SAA from the anticipated crash-landing after its business-rescue practitioners [BRPs] relented and agreed to work with the government to save the entity.
They were left with little choice but to offer SAA’s 4648 employees a severance agreement. The package included two weeks’ severance pay, notice pay, leave pay and a pro rata 13th cheque. This offer was dismissed by the unions and workers at SAA, most of whom argued that the airline and jobs could be saved.
By then, according to the one-page memorandum of understanding signed by both BRPs and department of public enterprises acting director general Kgathatso Tlhakudi, parties would have agreed on elements of a business-rescue plan, which include saving jobs. l A labour workstream that will find a middle ground between the section 189 process begun by the rescue practitioners and the compact reached by labour the department of public enterprises.
The practitioners faced more pressure when the labour court issued an order interdicting them from proceeding with the retrenchment of 2200 employees, a case that has been ongoing at the Council for Conciliation, Mediation and Arbitration. “We are of the view that this time government must take a stand to protect the public purse and join forces with labour in order to oppose the gross wastage of [the] BRPs,” their statement said.
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