SAA excludes pilots for disagreements in business rescue deal



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By Mwangi Githahu Article publication time 1 hour ago

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Cape Town – SAA has blocked all of its pilots affiliated with the South African Airways Pilots Association (Saapa) as of noon today (Friday), after Saapa rejected an agreement with the airline’s commercial rescue partners .

This comes as the pilots union indicated that they would seek legal advice on the lockout.

Backing the decision of the corporate rescue partners (BRP), the Department of Public Enterprises (DPE) said: “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 to reduce the high cost structure caused by onerous contracts, high salaries and benefits implemented under the Saapa (RA) regulatory agreement ”.

DPE spokesman Richard Mantu said: “This is the best opportunity to agree on new terms of employment, which will result in a restructured, sustainable, agile and technology-savvy airline.”

Mantu said: “Unfortunately, the RA that was signed in 1988 is a financial burden on the national airline, as its main objective is to preserve the undeserved privileges accumulated through unjust laws that preserved the aviation careers of a small minority in this country”.

“These privileges came with unaffordable benefits and a salary framework that should be terminated. We agree with the BRPs and their insistence on addressing the AR as it cannot become part of the new SAA. The RA is unconstitutional and illegal, and it must be canceled, ”said Mantu.

“The lockout strategy undertaken by SAA is commendable, considering the negative impact the RA has had on the airline’s results. It contributed to the lack of transformation in SAA due to the various clauses included in the agreement, which have restricted the employment and promotion of black, colored and Indian pilots in the airline’s senior management structures, ”said Mantu.

“Given the fact that the government is looking for a strategic equity partner for SAA, the RA, in its current form, combined with succession clauses, will certainly make SAA less attractive to potential partners.”

In response to the decision, Saapa, through Chairman Grant Back, said: “Saapa is surprised, dismayed and disappointed with the inaccurate statements issued by the DPE and BRPs regarding the deadlock between the pilots and SAA, and the impending shutdown. of our members. “

“In fact, over the last few months, Saapa has already accepted most of the company’s demands. We have agreed to cancel the RA and replace it with a new collective agreement valid for three years. We have agreed to reduce salaries by up to 50%, which is much more than any other SAA employee or management group ”.

“In fact, Saapa has accepted the vast majority of the pending items, except for the illegal proposal on reducing drivers based on race,” Back said.

“Saapa will not be dictated or forced to submit. We are in the process of receiving legal advice, ”Back said.

When asked if there was another option for SAA, air transport economist Joachim Vermooten said there were two alternatives.

Vermooten, former advisor to the DPE at SAA, said: “One would be the incorporation of a new company for the restart. Then everything would have to be negotiated from scratch ”.

“Alternatively, the business rescue professional’s plan should have anticipated maintenance costs until the restart,” Vermooten said.

Meanwhile, the International Air Transport Association (IATA) has issued a statement saying: “IATA distances itself from the false claim in South Africa’s DPE press release today, in which it was said that it had compared remuneration of SAA pilots with those of other airlines. “

“As an industry body, IATA represents, leads and serves the industry in matters of common interest, but cannot be involved in the commercial or employment matters of individual airlines.

“For this reason, IATA is not aware of such details and has not made a comparison of the remuneration of SAA pilots or provided such information to the DPE,” the statement said.

Cape argus



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