In a statement dated April 21, the Department of Public Enterprises (DPE) reported that significant alignment had been achieved between the government and the relevant trade unions (and representatives of non-unionised workers) about the approach to be taken regarding financially beleaguered State-owned national flag carrier South African Airways (SAA), which was currently under business rescue. The representatives of the government and workers had held a video conference on that same day.
The government was represented by Public Enterprises Minister Pravin Gordhan, who was chair of the Inter-Ministerial Committee (IMC) on SAA, Labour and Employment Minister Thulas Nxesi, and Tourism Minister Mmamoloko Kubayi-Ngubane, the latter two also members of the SAA IMC. The workers were represented by leaders of the South African Transport and Allied Workers Union, the National Union of Metalworkers of South Africa, the SAA Pilots’ Association, the National Transport Movement, the Aviation Union of Southern Africa, the South African Cabin Crew Association, and non-unionised staff. SAA’s business rescue practitioners (BRPs) were not represented.
“There was consensus that the unions would work with the government to ensure that a new financially viable and competitive airline emerges from the business rescue process; that a consultative forum be established to advance dialogue and consultation on the process ahead; that there will be a sharing of ideas on how best to ensure the wellbeing of employees at this challenging time, and that there must be no dependence on the fiscus,” said the DPE in its media release. “The Unions agreed that in arriving at a solution for SAA, some jobs will be lost, and that employees that remain behind will need to sacrifice some of the unaffordable arrangements that had worsened the airline’s financial position. It was agreed that social plans will be developed to cushion the effect of losing jobs on the affected employees.”
The IMC reaffirmed that the government could not supply any further funding to the airline. It urged everyone concerned to commit themselves to “a creative solution” for the flag-carrier, to ensure that the business rescue process did not fail. It asked the SAA unions to put forward their suggestions for the restructuring of the airline and the future of jobs in it.
It was agreed that the question of the future of SAA was an urgent one, given that people’s jobs were in danger. The government assured that it would inform the airline’s BRPs of the outcomes of the virtual meeting, and urge them to take into account the proposals emanating from the consultations between government and labour.
The unions emphasised the need to hold to account those responsible for doing harm to the airline through corruption and mismanagement. The DPE statement also pointed out that the meeting took place against the background of the global Covid-19 pandemic. “The pandemic has had a massive negative impact on the aviation and tourism industry, both globally and in South Africa,” it observed.