State-owned airline South African Airways (SAA) announced on Friday that it had reached agreement with trade unions to end a seven-day-long strike. The unions were the National Union of Metalworkers of South Africa and the South African Airways Cabin Crew Association. The agreement was ratified by all three parties on Thursday.

The workers will get a 5.9% pay increase with effect from February 2020 payday. This increase will be backdated to April 1, 2019. The payment of the first six months (April to September 2019) of backpay would be paid on payday March 2020. The remaining four months backpay would be paid in April 2020. The implementation of these financial provisions was dependent on SAA having the necessary funding.

The Section 189 (of the Labour Relations Act) retrenchment process started by SAA on November 20 would be suspended from now to January 31, 2020, for workers, but would go ahead for management. The airline and the “recognised” trade unions would apply to the Commission for Conciliation, Mediation and Arbitration and to the Department of Employment and Labour for SAA to take part in the Training Layoff Scheme.

SAA and the two unions also agreed to create a Task Team. This would primarily seek to identify and evaluate proposals to save costs. These could included examining contracts and implementing insourcing. Any savings could, in part, be ring-fenced and paid to workers.

“Our country needs a joint effort to create and maintain productive industrial relations that are key to the stability required to grow and expand the economy, create and maintain jobs and promote the country’s global competitiveness,” affirmed SAA acting CEO Zuks Ramasia. “This agreement with the unions will help promote that atmosphere of positivity, inclusivity and sustainable growth.”

Another union with members at SAA, the National Transport Movement had also, separately and earlier, accepted the airline’s wage offer. Ramasia said she was “equally pleased” with that agreement.

“Global economic growth remains largely anaemic,” she noted. “The impact is being felt by most markets where the growth picture is fluid. As South Africa’s number one airline, we look forward to implementing this constructive agreement that helps SAA to enhance its competitiveness whilst preserving and protecting jobs.”  

Following the settlement of the labour dispute, SAA also announced on Friday that it would reinstate its full flight schedule over the weekend. It expected to have most of its flight schedule restored on Saturday 23 November and the full schedule (domestic, intra-African and intercontinental) operating again on Sunday 24 November.