South Africa: Public Enterprises On Further Engagements With Organised Labour to Discuss the Restructuring of South African Airways

press release

Please be advised that the Department of Public Enterprises (DPE) will this morning start engagements with three labour unions to discuss the restructuring of South African Airways (SAA), the business rescue plan for the airline and voluntary severance packages (VSPs) for employees who will be retrenched.

The DPE has been approached by National Union of Metalworkers of South Africa (NUMSA), the South African Cabin Crew Association (SACCA) and the SAA Pilots Association (SAAPA) with the request to meet.

Four other unions and employee representatives already indicated yesterday that their members are ready to sign and accept VSPs that are being offered as part of a business rescue process for SAA.

NUMSA, SACCA and SAAPA do not support the VSPs or the business rescue plan.

Engagements with these unions are likely to concentrate on their position in respect of a business rescue plan for SAA, the structure of a new airline that must emerge from a business rescue process, the number of employees to be retained, the kind of skills and expertise that will be required at Board and management level for a new restructured airline.

The DPE will where possible provide regular updates to the media over the course of this weekend, as developments unfold from engagements with these unions.

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