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Business Rescue Practitioners (BRP) issued a 48-hour notice on Wednesday to prevent nearly 400 pilots from accessing the company’s facilities until they have agreed on new terms and conditions of employment.
FILE: Aviones SAA. Image: EWN
JOHANNESBURG – The Department of Public Enterprises (DPE) said on Thursday that one of the critical areas for South African Airways (SAA) restructured take off was to reduce the high cost structure caused by the high salaries and benefits implemented by the South. Regulatory Agreement (RA) of the Association of African Pilots (Saapa).
Corporate Rescue Practitioners (BRP) issued a 48-hour notice on Wednesday to prevent nearly 400 pilots from accessing the company’s facilities until they have agreed on new terms and conditions of employment.
This is part of efforts to rescue the airline and form a smaller entity with reduced operating costs.
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The DPE said it fully supported the administrators’ move.
“The Department of Public Companies supports the decision of South African Airways (SAA) corporate rescue practitioners to block union members, the South African Airways Pilots Association (Saapa) after lengthy negotiations failed to reach agreements on new employment conditions for the future restructured airline, ”DPE spokesman Richard Mantu said in a statement.
“As a shareholder on behalf of the government, the department believes that one of the critical areas for a restructured SAA to take off is reducing the high-cost structure caused by onerous contracts and high salaries and benefits implemented under the Saapa RA.”
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