While the Department of Public Enterprises (DPE) keenly awaits the completion of the implementation of the business rescue plan of South African Airways (SAA), employees of its subsidiary, SAA Technical (SAAT) are still in the dark about their future, it seems.

Unlike SAA, its subsidiaries are not in business rescue and therefore fall outside the scope of the business rescue practitioners. 

SAAT is one of SAA's creditors. In terms of SAA's rescue plan, creditors such as SAAT will only get about seven cents to the rand for the millions owed to it.

The Aviation Union of Southern Africa (AUSA) informed its members in a letter dated 16 February, and seen by Fin24, that it met with SAAT last week.

The company was, however, unable to give the AUSA representatives any positive indications regarding the business and its finances going forward. The union representatives were told that the board and shareholder are working tirelessly to seek funding for SAAT.

No confirmation could, however, be given that SAAT will receive any funding from the R10.5-billion provided by Treasury in the mini-budget to implement SAA's business rescue plan. Although the plan mentions that SAA subsidiaries like SAAT and low-cost airline Mango, would need funding, it does not provide for that to come from the R10.5-billion.

However, SAA's shareholder, the DPE, has indicated in the past that it has always been its understanding that some of that money would also be able to be passed through to subsidiaries like SAAT, Mango and AirChefs.

AUSA hopes to meet with SAAT again in the near future. The union has also requested an urgent meeting with the board.

Since March 2020, SAAT employees received only part of their salaries. Outstanding salaries of SAAT employees as from September 2020 until December 2020 are R144 681 068. The percentage salary payable for January 2021 was 50%.

Nelson Lamityi, the national coordinator on aviation of the South African Transport & Allied Workers Union (Satawu) says whatever funding has been made available for payment to SAA employees, some of that should, "by nature", also go towards employees of its subsidiaries like SAAT. 

The union hopes to meet with the DPE soon in order to discuss the matter, as well as possible solutions going forward.

"Workers must be given first preference to cushion them against the challenges faced by SAA and its subsidiaries.

SAA's rescue practitioners are in the process of making payment to former employees who opted for voluntary payment packages.