SAA wants R2.2bn to pay for voluntary severance packages

An announcement in regards to the supply of funding for the SAA business rescue plan will be anticipated “quickly”, based on individuals concerned within the discussions.

In July, the treasury dedicated to seek out funding for the state airline’s enterprise rescue plan.

Officers from the division of public enterprises and the SAA enterprise rescue practitioners, Les Matuson and Siviwe Dongwana, held discussions on the matter this week.

The rescue practitioners’ spokesperson, Louise Brugman, stated: “The shareholder is exploring plenty of choices for the sourcing of funds, of which some could possibly be SEP [simplified employee pension] funding.”

Staff got till August 31 to simply accept or to say no the retrenchment bundle provides.

Brugman stated: “Every worker wants to come back into the workplace to signal for his or her VSP [voluntary severance package] earlier than the approval course of is accomplished.”

Of the 5 000 SAA staff, greater than three 000 have utilized for the packages to date. One of many three situations for the cost of the bundle, which is specified by the termination contracts, is the “receipt of funding from the shareholder”.

The contracts, seen by the Mail & Guardian, don’t say when the funding will come by means of.

The enterprise rescue plan, which was accepted by the airline’s collectors in July, tasks that no less than R10.1-billion is required. About R2.2-billion can be put aside for the cost of voluntary severance packages.

The rescue plan foresees only one 000 individuals will stay employed by SAA.

Severance funds can be made as soon as a settlement has been reached with unions or 30 days after the finalisation of the part 189 course of.

Solidarity’s consultant, Derek Mans, says that for the reason that part 189 course of lapsed on Wednesday, the federal government has the following 4 weeks to make the funds. 

The union’s members have signed the retrenchment agreements however Mans says the phrases “are much less beneficial than the phrases stipulated throughout the enterprise rescue plan”.

He stated Solidarity is consulting their authorized crew and senior counsel to “see if we can’t take motion in opposition to SAA to implement the plan”.

The Nationwide Unions of Metalworkers (Numsa), the South African Cabin Crew Affiliation (Sacca), and the Nationwide Transport Motion have additionally confirmed that their members have signed the agreements.

Numsa and Sacca had beforehand suggested their members to not signal the agreements till funding for the rescue plan had been secured. Numsa’s Phakamile Hlubi Majola stated that by signing the contracts staff could be terminating their employment. Regardless of this, their members had signed.