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South African Airways rescue team to appeal court ruling on layoffs

The Labour Court’s decision to side with two trade unions in its judgment on Friday was a major blow to the administrators.
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Administrators trying save South African Airways (SAA) will appeal a court ruling that ordered them to halt a layoff process, one of the administrators Siviwe Dongwana told Reuters.

The Labour Court’s decision to side with two trade unions in its judgment on Friday was a major blow to the administrators as they have said that layoffs are necessary to avoid the airline being liquidated.

State-owned SAA has been fighting for its survival since entering a form of bankruptcy protection in December.

Its fortunes deteriorated when the coronavirus pandemic forced it to halt all commercial passenger flights and the government said it would not provide further funding.

The administrators have until the end of the month to draft a rescue plan for SAA, which has not made a profit since 2011 and has received bailouts worth more than R20 billion ($1.1 billion) over the past three years.

Public Enterprises Minister Pravin Gordhan wants SAA to be restructured into a new airline.

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Court case won or lost…..the question remains “Where is the money going to come from for staff salaries this May? And beyond?”

Here we have unions fighting the loss of 5,000 or so airline staff (…and yes, perhaps 100,000 jobs in down-line support industries), yet….

SPARE A THOUGHT FOR THE OTHER 1-3 MILLION PEOPLE IN DANGER OF EVENTUALLY LOSING THEIR JOBS (OR BUSINESS) IN SA!!!! What about them?!

(…this must be one of the most selfish ‘fights for survival’ one can imagine!)

Clearly the administrators have misplaced their magic wand.

If they still had it they could wave it over the pumpkin that is SAA and turn it into a stagecoach with footmen. Or a new government run airline.

This is mind blowing! Virgin is retrenching 3000 workers and there are one of the best run companies. One large aviation North American company has filed for liquidation and SAA who has been running at a loss for more than 10 years, wasting taxpayer’s billions think that they are OWED a rescue short of demanding one ! Really!!!

KCD : sorry, but no airline specialist would have described Virgin as a best run company. It was destined to follow the route of all the other Virgins : eventually, shall we call it politely, not a virgin

Government pension fund if gov move ahead with these rescues should only be the fund funding this madness and not the use of private pension also. Private pension people are already getting way less than gov people on retirement on the same grade and number of years worked ! Let not forget that no one rescues private sector if the company is not doing well. Employees get retrenched, no bonuses and increases and gov people are always guaranteed jobs and payments!

Our Jamnadas…this was not how things were meant to be. In the socialist paradise of East Germany in 1962 all had a job, the lovely SAA would be flying and various criminals would steal the country broke.

Now we have this irritating thing called global capital which decides everything at the end of the day(the real Baas) . Firstly it has decided no more money for SAA-yes Comrade CR called this ..but probably because the Baas said no money for SA if you squander it on SAA.

Jamnadas sometimes your first loss is your best loss -and imagine having another R25bn + now-all stolen and mismanaged at SAA-that will be your legacy-a failed pharmacist and failed de facto CEO of SAA

The disaster act and the SAA rescue fiasco are used as a smoke screen to change from the gravy train to the gravy plane. Dubai is calling and you need wings to get over to there.

End of comments.

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