SAA claims vindication by Labour Court

28th August 2015

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

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South African Airways (SAA), the State-owned national flag carrier, believes it has been vindicated by the recent Labour Court ruling regarding retrenchment processes at SAA and its subsidiary, SAA Technical (SAAT). SAAT undertakes aircraft maintenance, repair and overhaul. The court ruled in favour of the companies.

The case saw seven unions seeking to stop SAA and SAAT undertaking retrenchments, on the grounds that the companies had to comply with “fair procedure”. The main unions concerned were the Aviation Union of Southern Africa (AUSA), the National Union of Metalworkers of South Africa (Numsa), Solidarity and the South African Transport and Allied Workers Union (Satawu).

These, and the other unions supporting them, took action against both SAA and SAAT and SAA’s recognised unions, the National Transport Movement (NTM), the South African Cabin Crew Association (Sacca) and the United Association of South Africa (Uasa). “Whilst it was within the labour unions’ rights to approach the court, SAA feels it was a step [that was] completely unnecessary as the differences could have been resolved in a mutually constructive manner,” said the company in its press release.

“During the consultation process, the companIes consulted with the seven registered unions referred to above, and two management representative bodies,” stated the court in its judgement. “Although the 60-day period provided for in section 189A(7) elapsed on 20 June 2015, the consultation process was extended on a number of occasions – first to 9 July 2015, then to 22 July and thereupon to 22 August 2015. To date, over the course of some three-and-a-half months, the parties have conducted nine facilitated consultation sessions and 45 private consultation sessions.”

The court described this sequence of events as a dynamic consultation process. It found that SAA’s collective agreement with the NTM, Sacca and Uasa was “valid and binding”. As a result, the attempt by the other unions to have this agreement set aside failed. “SAA and its recognised trade unions believe that the collective agreement benefits SAA and all its employees,” stated the company.

SAAT has no such collective agreement with any unions, “despite numerous attempts by SAAT to conclude such an agreement”. Nevertheless, the court found no grounds to intervene in the retrenchment process at the business. “In circumstances where the parties have, to date, engaged in nine facilitated consultation sessions and 45 private consultation sessions and where the consultation process is due to continue at SAAT, I am unable to detect any substantial procedural failure in relation to SAAT that would warrant the intervention of this court in terms of section 189A(3) at this stage,” stated the court’s judgement.

“The Court’s dismissal of the AUSA, Numsa, Satawu, Solidarity and Others’ application is indicative of the fact that processes of this nature can only be resolved with a commitment by all parties to joint consensus seeking,” affirmed SAA.

SAA is currently implementing its Long-Term Turnaround Strategy. Part of this involves cutting labour costs. The base year for comparing the 2014/15 staff complement was 2009, because that was the year the airline had both its lowest staff numbers and highest passenger numbers. Back in April, SAA employed 14% more staff than it had in 2009.

The company had previously stated that it hoped to complete its “headcount restructuring” in September. SAA’s then acting CEO, Nico Bezuidenhout, reported in June that consultations with the unions were under way and that it appeared that SAA would be able to cut its staff complement by between 8% and 10% and that it would be able to do this without resorting to retrenchments, relying on natural attrition, early retirements and voluntary departures instead.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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