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SAA Restructuring Plan Under the Spotlight

July 8, 2020

Department of Public Enterprises

The public enterprises department is calling on unions to consult with each other and find a solution to the future of South African Airways (SAA).

The department declared this in a statement calling on unions to convene bilateral meetings to finalise the SAA restructuring plan.

The department recently held bilateral discussions with all unions following withdrawal from the Leadership Consultative Forum.

The department has had separate meetings with the National Transport Movement (NTM), South African Transport and Allied Workers Union (SATAWU), Aviation Union of Southern Africa (AUSA), Solidarity, the National Union of Metalworkers of South Africa, the SA Cabin Crew Association (SACCA) and the SAA Pilots Association (SAAPA) and representatives of SAA non-unionised managers and ground staff.

According to the department, the NTM, SATAWU, AUSA, Solidarity and SAA non-unionised staff representatives have “made a commitment that they would like to sign the VSPs, which can be offered to employees immediately after the creditors vote on the Business Rescue Plan on Tuesday, 14th July 2020”.

Meetings were held with NUMSA and SACCA, and SAAPA separately on Friday, 3 July 2020.

Their concerns centered on the number of people to be retrenched and the value per employee of the proposed VSP.

The department made it clear to the unions that the R2.2 billion budgeted for VSPs is the best that can be made available during the current financial crisis facing the local economy.

Meanwhile, the department, in Government Gazette 43495, published proposed amendments to the Special Rules of the Transnet Sub-Fund of the Transport Pension Fund and the Rules of the Transnet Second Defined Benefit Fund.

The proposed amendments stipulate that the Board may consider the granting of additional pension increases, in addition to the 2% annual increase, from time to time.