South African Airways\u2019 administrators extended a deadline for workers to agree to severance packages after minister for Public Enterprises Pravin Gordhan said he needs time to explore funding options for the bankrupt state-owned carrier.<\/p>\n
The business-rescue team led by Les Matuson and Siviwe Dongwana are trying to persuade labour groups to sign off on retrenchment deals as a possible alternative to liquidation proceedings, which could see the near 5,000-strong workforce made unemployed without compensation.<\/p>\n
The plan is opposed by Gordhan, who wants to instead build a new airline.<\/p>\n
Unions now have until 8 May to agree to the offer to workers, according to a letter signed by the administrators and seen by Bloomberg News.<\/p>\n
If they refuse, all employees – whether represented or not – may be given a further three days to make up their own minds.<\/p>\n
The Department of Public Enterprises said Friday it wants to create a national carrier that\u2019s both publicly and privately owned, profitable and able to serve South Africa\u2019s trade connections.<\/p>\n
SAA\u2019s entire fleet is currently grounded as governments around the world close borders to contain the Covid-19 pandemic.<\/p>\n