The Public Enterprises Department has welcomed the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association’s (Sacca) decision to accept voluntary severance packages at South African Airways (SAA) as a step in the right direction.
The unions were opposed to the business rescue practitioner’s plan to retrench workers as part of restructuring the battling airline.
SAA is currently under business rescue with over 2,700 workers at risk of losing their jobs.
Numsa and Sacca have been vehemently opposed to layoffs at SAA, but after a meeting with the Public Enterprises Department, the unions believe it’s the best decision for members who prefer the voluntary severance packages.
Numsa spokesperson Phakamile Hlubi-Majola said: “In terms of the scheme, SAA will provide an amount of R4,650 towards their pension, UIF and the company’s medical aid. As Numsa and Sacca we have repeatedly called for this to support workers while the airline wraps up.”
Hlubi Majola added: “We can now say with confidence if our members wish to accept the voluntary packages, they can do so. We now feel better of the possibility of our members accepting those packages.”
The SA Pilots’ Association is still mulling over whether to accept the deal. It remains the only union to not sign the offer.
Meanwhile, the Public Enterprises Department has urged SAA creditors, employees and all others involved to vote in favour of a revised business rescue plan next Tuesday.
The department believes the now published rescue package is the most expeditious option for the national carrier to restructure its affairs, its business, debts and other liabilities.
It said the plan would result in the emergence of a new viable, sustainable and competitive airline that provided integrated domestic, regional and international flight services.
The administrators have warned government will need to find an addition R10 billion.
-EWN
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