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Administrators issued a 48-hour notice Wednesday to prevent nearly 400 pilots from accessing the company’s facilities until they agree to new terms and conditions of employment.
SAA plane at OR Tambo International Airport. Image: 123rf
JOHANNESBURG – The Department of Public Enterprises said it supported the decision by South African Airways (SAA) corporate rescue professionals to block the pilots.
Administrators issued a 48-hour notice Wednesday 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 last year after roughly 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 would affect 383 pilots who are members of the SAA pilots association.
In a statement, the department said as a shareholder on behalf of the government that it believed that one of the critical areas for a restructured SAA to take off was reducing the high-cost structure caused by onerous contracts and high salaries and benefits.
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