Trade Union Solidarity handed in an application to the Johannesburg High Court to have the embattled South African Airways placed under business rescue, prompted by the state-owned entities' manifold financial woes.
In court papers submitted to the Johannesburg High Court on Thursday 21 November, the union said in spite of SAA's financial distress, the entity can be rescued, provided it is placed under supervision and an independent business rescue practitioner is appointed.
Solidarity COO Dirk Herman said the state-owned entity is fast approaching liquidation, placing thousands of jobs at risk compounded by an ailing economy.
"A business rescue is the only remaining option to limit the damage,"
"In all, 11 000 workers will lose their jobs and a debt burden of billions of rand will have to be absorbed by the Treasury if there is no radical intervention," Herman said.
Solidarity said it is taking this action as part of its broader campaign against "the squandering of tax money", with SAA regarded as the country's major offender.
The court process was launched under Section 128(1) of the Companies Act which permits, among other parties, trade unions to make a formal application to the High Court for an order to place...