South Africa started a fresh battle with labor groups in its effort to revive the bankrupt state airline, offering three months of wages to employees who haven\u2019t been paid since March.<\/p>\n
The government\u2019s Department of Public Enterprises and the National Union of Metalworkers of South Africa agreed to discuss the matter later on Tuesday, according to a spokeswoman for the labor group.<\/p>\n
Numsa and the South African Cabin Crew Association, another union, had expected members to be paid in full, in line with the country\u2019s legal framework for a business-rescue process.<\/p>\n
Numsa can\u2019t yet say if it will accept or reject the three-month offer for South African Airways staff, spokeswoman Phakamile Hlubi-Majola said by text message. \u201cWe can only say that the DPE must not forget that workers have made major sacrifices,\u201d she said.<\/p>\n
The new flareup represents another barrier to South Africa\u2019s plan to get SAA to fly again, about a year after the loss-making carrier first went into bankruptcy protection. While administrators published a rescue plan in June, the state has struggled to source the required funding and a search for an outside investor has been inconclusive.<\/p>\n
The effort has been made significantly harder by the Covid-19 pandemic, which has hobbled both state finances and demand for international air travel.<\/p>\n
SAA hasn\u2019t flown a commercial flight since March, when its fleet was grounded to help contain the coronavirus.<\/p>\n
Reduced workforce<\/strong><\/p>\n The administrators calculated that R2.2 billion ($147 million) would be needed for employee costs, which included both back payments and voluntary-severance packages. The new SAA is seen having a workforce of about 1,000 employees, down from about 4,800 before going into bankruptcy protection.<\/p>\n Finance minister Tito Mboweni allocated about R10.5 billion for SAA from other state budgets in October, and R1.5 billion was transfered at the start of this month. However, the administrators say the cash can\u2019t be used as the government attached conditions that breached labor and companies regulation. About 1.2 billion rand is needed to pay back salaries, according to their spokeswoman.<\/p>\n The DPE released a statement late Monday urging unions to accept the three-month offer, citing the \u201cdeep cuts\u201d the government has already made to fund SAA. A spokesman referred back to that when contacted on Tuesday.<\/p>\n \u201cIt is extremely unfair,\u201d SACCA president Zazi Nsibanyoni-Anyiam said by phone. The union is willing to discuss deferring some of the payment of salaries, or taking it in some form of equity, she said.<\/p>\n The offer will not be accepted \u201con our watch,\u201d Grant Back, chairman of the South African Airways Pilots Association, said on Monday.<\/p>\n
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