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Article

10 Feb 2020

Author:
Ernest Mabuza, Sunday Times (South Africa)

So. Africa: Union accuses aviation company of attempting to unlawfully retrench employees

‘Unions vow to fight 'unlawful retrenchments' caused by SAA route closures’ 7 February 2020

Two labour unions representing SAA staff members on Friday condemned the business rescue practitioners' decision to cancel 11 routes, which would inevitably lead to job losses. The business rescue practitioners announced on Thursday that as of February 29, domestic destinations, including Durban, East London and Port Elizabeth – but excluding Cape Town - would cease to be operated by SAA. The practitioners said every effort was being taken to limit the effect of job losses in SAA and its subsidiaries. However, they said a reduction in employee numbers would unfortunately be necessary.

…The unions said that instead of being consulted, labour was merely informed of the decision and its devastating consequences in respect of job losses. The unions said it was concerning that the business rescue practitioners were unable to provide “any rational basis” for the cancellation of routes. The unions said the practitioners had failed to produce a business rescue plan and to take positive steps towards saving SAA in the most optimum manner possible for the benefit of all stakeholders.

“Not only were patently corrupt contracts not suspended but the very incompetent, if not corrupt, management which caused the demise of SAA was permitted to continue managing operations to the further detriment of SAA.” The unions said there were ways to save the airline money which the business rescue practitioners were ignoring.  “SAA’s biggest cost driver is not labour, it is the R25bn per year procurement spend which, since 2015, has been exposed in various forensic reports as being the product of looting, corruption and mismanagement.”