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SAA managers in distress have issued a 48-hour notice to prevent nearly 400 pilots from accessing the company’s facilities until they agree to new terms and conditions of employment.
SAA entered a local form of bankruptcy protection in December 2019 after about a decade of financial losses, and its luck worsened after its flights were suspended due to the Covid-19 pandemic.
Efforts to rescue the state airline face resistance from unions, which are at odds with the government over wages.
The administrators, who argue that the pilots had “very extensive and luxurious benefits,” said the lockdown will affect 383 pilots who are members of the SAA Pilots Association (SAAPA).
Managers want pilots to agree to new terms and conditions, which include new pay scales.
Reuters could not immediately reach SAAPA for comment.
The shutdown locks SAAPA members from the airline’s workplace starting at noon on Friday, until the manager’s demands are accepted. The pilots affected will not be entitled to any remuneration or benefit during the duration of the blockade.
“The proposed new terms and conditions are fair and competitive for an African regional airline,” administrators said in a statement.
“In fact, SAA has one of the highest cost bases in terms of pilot salaries, per diem, sick leave and travel reimbursement benefits internationally. This cannot continue if SAA’s business rescue is to be successful, ”they said.
Of the roughly 4,500 SAA employees when it entered management in December 2019, about 3,200 have accepted severance terms and 1,300 are still in termination inquiries.
Reuters
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