SAA labour unions accept severance packages

Employees who stand to lose their jobs will be supported by a social plan and skills development programme.
A plan that lays the groundwork for a revamped carrier was announced last month. Image: Supplied

Labour unions and representatives of non-unionised managers and ground staff at South African Airways agreed to accept voluntary-severance packages before the state-owned carrier’s proposed restructuring.

Only the South African Airways Pilots Association hasn’t agreed to the plans, and will pursue a parallel process to consult the airline’s administrators, the Department of Public Enterprises said in a statement. Six other unions, including the National Union of Metalworkers of South Africa and the South African Airways Cabin Crew Association, endorsed the offer following talks on Tuesday.

Read: Government, unions agree to retain 1 000 more employees in new SAA

Employees who stand to lose their jobs will be supported by a social plan and skills development programme. Around 1 000 South African Airways staff will be retained and roughly 2 700 jobs will be cut, the department said. Those being dismissed will have access to the voluntary-severance packages after creditors approve the airline’s business rescue plan.

SAA was placed in a local form of bankruptcy protection in December. After frequent clashes between the government and administrators over restructuring proposals, a plan was announced last month to avoid liquidation and lay the groundwork for a revamped carrier. The rescue plan would require at least R26.7 billion of state funding.

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Initially they decided to retain 1000 people, then it was doubled to 2000. When you decide on 1000, or 2000, it is obviously just a thumbsuck agreement. On what ground? To decide on the number of people needed, the goals and planned operations of the organisation must be known. Where are the work studies and job evaluations for this random numbers of 1000 or 2000? To run an efficient business, you must know what service you will render and what each employee will contribute to render this service. To just decide on 1000, no, lets make it 2000, shows that nobody has the faintest idea of what they are doing.This mode of decision making certainly asks for heads to roll. Start with the minister and then with the so-called rescuers.

Jamnadas at his best! Taxpayer recapitalises SAA so that the workers get packages and the creditors get whats due to them and not more. So preference to employees(which is the law) but the taxpayer will make up a big package-more than the legal requirement.

In short Jamnadas doing what he did to Eskom( forcing the capable CEO to flee the sinking ship) when halting retrenchments-buying votes with taxpayers money!

Our Comrade Jamnadas-stuck in 1960….a true socialist

End of comments.

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