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Public Business Department Minister Pravin Gordhan and South African Airways (SAA) Business Rescue Practitioners (BRP) have reached an agreement to delay signing reduction agreements until Friday, May 1.
This was right after the BRPs sent a letter stating that reductions or settlement had already been recorded on the embattled airline’s card.
SAA employees are not required to sign reduction agreements
In a letter addressed to organized workers at SAA on Saturday, April 25, the Minister of Public Companies, Pravin Gordhan, said:
“We note that the Business Rescue Practitioners presented a collective agreement to all SAA unions and non-union employees on April 17, 2020, for their consideration and negotiation, and we have informed that the agreement must be reached before April 24, 2020. The term was later extended to April 25, 2020 at 12:00. ”
The agreement seeks to provide employees with the opportunity to complete a mutually agreed-upon employment separation.
“We advise that the department agreed with the BRPs on a moratorium on the signing of the reduction agreements until Friday, May 1. As a result, employees are not required to sign the collective agreement for reductions during the moratorium period, “he added.
BRPs cite reductions or liquidation
SAA BRPs Les Matuson and Siviwe Dongwana sent a letter warning all affected parties that the airline could face a downsizing or a complete liquidation.
This comes after the Public Business Department refused to bail out the airline with another R10 billion earlier this month.
“Professionals do not have sufficient funds available to continue meeting SAA’s obligations to their employees beyond April 30, 2020 and bear the costs of the liquidation process. Consequently, the liquidation process depends on employees accepting the termination of their employment in a timely manner by mutual consent, ”the statement said.
“The BRPs have presented a collective agreement to all SAA unions and representatives of non-union employees on April 17, for their consideration and negotiation, and have informed that the agreement must be reached before April 24,” he added.
President Cyril Ramaphosa placed the embattled airline under an urgent commercial rescue in early December 2019; almost five months later, there seems to be no solution.
“The post-start financing received of R5.5 billion was fully utilized and utilized in March,” he said.
“It is the opinion of professionals that the proposed actions described above provide the most responsible way for a managed cessation of airline operations and risk management for all affected parties,” said BRPs.
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