The unions said on Monday that the urgent intervention by the business rescue practitioners would go a long way to making the airline more sustainable in the long term.
The unions said the funding from the DBSA had been criticised because of the many bailouts SAA had received in the past, and the unions said they also did not want an airline which was dependent on bailouts.
“But if SAA collapses, 10,000 workers and their families will suffer because of job losses, and we know that on average, workers support between five and seven extended family members, which means up to 70,000 people may be affected,” they said.
The union said against a backdrop of extremely high unemployment and a stagnating economy, it would be extremely reckless for government to allow SAA or any other state-owned entity to collapse.
Unions welcome R3.5bn loan to SAA, but want swift action on embattled airline
Image: SAA
Two unions at SA Airways (SAA) have urged business rescue practitioners to speed up and intensify the work of cancelling, renegotiating or insourcing financially burdensome contracts.
The National Union of Metalworkers of SA (Numsa) and the South African Cabin Crew Association (Sacca) made this comment as they welcomed the R3.5-billion funding the airline received from the Development Bank of South Africa (DBSA) last week.
“The airline is under business rescue in part because it spends R25bn on procurement per year.
“Some of these are evergreen contracts, with grossly inflated pricing, and there has been no intervention on these contracts which are choking the airline,” the unions said.
The airline's board of directors adopted a resolution last month to place the company under business rescue, hoping to facilitate the rehabilitation of the “financially distressed” company.
SAA gets R3.5bn lifeline from Development Bank
The unions said on Monday that the urgent intervention by the business rescue practitioners would go a long way to making the airline more sustainable in the long term.
The unions said the funding from the DBSA had been criticised because of the many bailouts SAA had received in the past, and the unions said they also did not want an airline which was dependent on bailouts.
“But if SAA collapses, 10,000 workers and their families will suffer because of job losses, and we know that on average, workers support between five and seven extended family members, which means up to 70,000 people may be affected,” they said.
The union said against a backdrop of extremely high unemployment and a stagnating economy, it would be extremely reckless for government to allow SAA or any other state-owned entity to collapse.
Government 'clipped SAA's wings'
“Workers should not be expected to suffer job losses because of the corruption, mismanagement and looting of the board and the executive management of SAA.
“There have been no consequences for the board and executive management of the airline for their role in the collapse of SAA.”
The unions said they would be meeting the business rescue practitioners again this week, and formal engagement on salaries and the restructuring plan will also be taking place.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos