Dozens at SAA facing the axe

CASH-STRAPPED South African Airways (SAA) is planning to cut staff as part of its efforts to turn around the business.

Acting chief executive Nico Bezuidenhout told the national carrier’s staff at the weekend this had to be considered in addition to other measures taken.

In a note to staff‚ Bezuidenhout listed measures to help return the business to “relative stability”. Changes to “network configurations” to the tune of R600-million; contract renegotiations resulting in R91-million in savings; and renegotiated fleet lease extensions of three Airbus A340 aircraft‚ among other steps‚ had been taken as part of a 90-day “action” plan. But a headcount “rationalisation”‚ including that of managers‚ is still to be done.

Options include early retirement‚ voluntary severance packages and retrenchments‚ if necessary. “Since 2009‚ staff levels have grown substantially while in stark contrast‚ revenue and passenger numbers are declining‚” Bezuidenhout said. According to its 2013 annual report‚ the airline employed 11462 people. Bezuidenhout said staff and labour would be consulted on the cuts. “There is an ongoing consultation process. “We are at an early stage of engagement with labour and we will discuss this with them and all other stakeholders. We are at a sensitive process with labour and staff but it is a consultation stage and there is nothing sensational here‚” he said.

SAA hoped to make savings of R1.25-billion through supplier contract renegotiations and other measures‚ he said. Solidarity’s Derek Mans said the union was aware of Bezuidenhout’s letter‚ and it had requested further information on the consultation before it commenced. “We took note of the letter and we submitted a letter to Bezuidenhout in terms of section 189 of the Labour Relations Act process‚ where there are certain requirements that must be fulfilled before any process of this magnitude commences.” He said if a higher number of staff were affected than expected (more than 50)‚ the union would consider approaching the Commission for Conciliation‚ Mediation and Arbitration (CCMA) to facilitate a resolution. National Transport Movement (NTM) president Ephraim Mphahlele said his union had not received any notice from SAA regarding the staff rationalisation‚ but that it would “work hard to defend jobs”. He said the NTM had proposals on how SAA could make savings without unnecessary job losses‚ which the union would table before SAA’s leadership “at an appropriate time”.

SAA has been wracked by boardroom problems while its financial position has deteriorated over the past few years. CEO Monwabisi Kalawe is suspended and facing disciplinary action. Though he was appointed to implement a long-term strategy‚ he soon fell foul of board chairwoman Dudu Myeni‚ who is close to President Jacob Zuma and who clashed with Public Enterprises Minister Lynne Brown over Kalawe’s suspension.

In January‚ the Treasury said it had given SAA another guarantee of R6.5-billion‚ taking total guarantees to R14.5-billion. In December‚ SAA was moved to the Treasury’s aegis from the Department of Public Enterprises as the cabinet said its problems were financial. — BDLive