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The South African National Metalworkers Union and the Cabina SA Crew Association are considering taking legal action against rescue professionals from South African Airways companies, they said in a joint statement on Friday afternoon.
The two unions, which together make up a majority of union representation on the conflicting state airline, say they are considering a court request to have BRPs removed.
Captain Grant Back, president of the SAA Pilots Association (SAAPA), said Friday night that they also believe that the BRPs have failed to fulfill their obligation and will also consider legal action to have the BRPs removed.
“We look forward to working with the Department of Public Enterprises (DPE) and the rest of the workforce to find a viable solution to revive SAA and maintain it as a national asset, which is necessary to boost our economy when we exit Covid -19 period” Back said.
The National Transportation Movement (NTM) has already rejected the current BRP proposal, “because it suggests that payment of compensation packages is subject to the sale of certain assets and the approval of creditors.”
The permutations are bringing the airline’s future to two options that are settlement versus restructuring, “said NTM President Mashudu Raphetha.
he said Friday night.
“It appears that the balance of forces is tipping towards the possibility of a liquidation, which may lead to a new airline.”
The Federation of South African Trade Unions (Saftu) also indicated on Friday that it “rejects with contempt” the BRP proposal. He views the proposal as an “attempt to blackmail workers.”
Saftu says the goal is “to collapse SAA to open the way for its privatization.”
A week ago, the DPE rejected a request for additional financing of approximately R10 billion from the BRPs to complete the trade rescue process.
The BRPs had also previously started a section 189 process with employees to restructure the company. About a week ago, the BRPs offered severance packages to all employees (except for Mango and the technical staff of SAA, subsidiaries that are not bailing out companies) in late April.
SAAPA is of the opinion that the entire section 189 process has been just “a verification exercise from the beginning.” SAAPA states that the workforce has not been consulted to their satisfaction and requested information has not been provided, such as the business plans the BRPs referred to along the way.
“How do you have a Section 189 process without a plan?” ask again.
Employees have been given until next week to accept the deal, which has since been adjusted.
As of April, all employees have received their full wages.
‘Defend the airline’
“We call on the government, and in particular the Department of Public Enterprises to save SAA, to join our application to defend the airline and work with us to develop a response plan that will ensure the future of the airline and save jobs. “, Numsa and Sacca state.
Earlier Friday, in a public speech on the financing of Covid-19, Finance Minister Tito Mboweni spoke of a “new economy” that could emerge after the shutdown ends. He said there will be new opportunities for companies to grow. Referring to Gordhan, Mboweni said a new airline could emerge from “SAA’s ashes”.
Numsa and Sacca accuse BRPS of having “an agenda to divest the airline’s assets” and liquidate it.
“We have no choice but to approach the court, not only to remove them, but also to demand a full breakdown of exactly how they have spent our hard-earned tax dollars … This is a battle for the very survival of the airline and for all working class families that will be affected, “say the two unions.
Repeated bailouts
On Tuesday, the DPE informed unions at a meeting, which excluded BRPs, that SAA can no longer depend on financial support from the government. This occurs after the government has repeatedly bailed out the airline over the years, often at the last minute.
Representatives of the SA Union of Transport and Related Workers, the SA National Union of Metalworkers, the SAA Pilots Association, the National Transport Movement, the South African Aviation Union and the Cabin Crew Association from South Africa were among the attendees.
The DPE said that all parties must commit to a creative solution to avoid the failure of the trade bailout process, which started in December last year. According to the DPE, an advisory forum would be established for talks on the best way to ensure the well-being of employees.
NTM says it is seeking clarity from the DPE regarding the options the government can offer SAA employees. The union also notes that it would take more time than the current BRP deadline to assemble its members properly once it is clear what the various options are and their implications.
The Solidaridad union has also expressed the need for more clarity on the role and function of the so-called “Leadership Pact” proposed at the meeting with the DPE rather than the trade bailout process.
“Not only the livelihoods of thousands of our members and their families are at stake, but so is the entire airline industry and SA economy,” Solidarity said in a letter to the DPE.
Back says SAAPA will not sign the termination contract put on the table by the BRPs in their current form. Like any other modified BRP offer, SAAPA, after due consideration, must first obtain a mandate from its membership to respond to the BRP.
The BRPs said in response to the threat of legal action, that the Section 189 process continues and the job termination offer is still on the table.
In BRP’s view, a liquidation process would provide a better option for employees and creditors than a simple liquidation.
On Thursday, BRPs said the airline cannot survive beyond the end of the month, and the remaining options are a forced liquidation or a liquidation process. Professionals said they do not have sufficient funds available to continue meeting SAA’s obligations to its employees beyond April 30, 2020.
“At this time, we wish to record our grave concern and disappointment because, despite the substantial amounts of cash injection that have been devoted to the trade bailout process, no plan has been put forward,” says Solidarity.
“This delay in delivery … has, in itself, exacerbated the crisis that existed prior to the trade bailout process. Our concerns are that sincere efforts to find a solution may have the unintended consequence of prolonging the entire process. commercial bailout, what SAA cannot pay. ”
The DPE referred Fin24 to the BRPs for comment.
* * This article is updated to include comments from SAAPA, NTM, Saftu and Solidarity.
