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Public Enterprise Minister Pravin Gordhan says they are not going to liquidate the SAA and that business rescue professionals should turn it around. Photo by Misheck Makora
- The National Union of Metalworkers of South Africa has accused Minister Pravin Gordhan of manipulating and deceiving workers.
- NUMSA Secretary General Irvin Jim said 3,200 jobs were sacrificed to rescue the airline, while SAA technical staff survived on 25% of their salaries.
- Jim said that misinformation related to an allocation of R1.5 billion – more than 10% of the R10.5 billion that SAA will receive to help its business rescue process – had caused “chaos” among workers.
In the latest news about the meeting between the Department of Public Companies and the unions on South African Airways, the National Union of Metalworkers of South Africa has mocked the Minister of Public Companies, Pravin Gordhan, accusing him of manipulating and deceiving workers.
The statement said that misinformation related to an allocation of R1.5 billion – more than 10% of the R10.5 billion that SAA will receive to aid its business rescue process – had caused “chaos” among workers.
The airline, which has been on commercial bailout since December last year, has reportedly advanced R1.5 billion with conditions. However, the assignment has been at the center of a storm over wage payments, as unions accused the Department of Public Enterprises of blackmail. Earlier this week, the DPE said it considered fair an agreement reached with some unions for the payment of outstanding salaries for three months.
Some unions were undermining the postponement agreement, he said.
But according to Numsa, the DPE did not request that salaries be deferred for three months. “This was a proposal that Numsa and SACCA put on the table as an alternative to what the DPE, through the SAA management, proposed in writing to the employees. The DPE and the SAA management want employees to they accept only the 3-month salary plus their bonus, but they must forfeit the remaining 5-month salary that SAA owes them, “said Numsa Secretary General Irvin Jim.
Jim added that despite media reports alleging that the payments were scheduled for SAA subsidiaries, only enough money was allocated to pay SAA salaries in full. “It would be immoral to take money from one group of workers to pay another,” Jim said.
Jim added that SAA workers had been unpaid for eight months and 3,200 jobs had been cut to save the airline. However, he acknowledged that SAA Technical workers had suffered similarly, earning only 25% of their wages.
“DPE is aware of all these problems, but instead of leading and finding viable solutions, the minister, Pravin Gordhan, is playing chess with the livelihood of the workers,” Jim said, adding that this was “facing a group of workers against another “. and it amounted to “ruthless brutality.”
The lack of reliable information had caused chaos, according to Jim, and workers were considering marching to demand payment from the airline’s business rescue professionals on Wednesday, when in fact the money had not been allocated to them.
“The workers of both entities are understandably desperate and frustrated,” he said.
He requested the intervention of the Presidency. “Surely this is the last straw. SAAT is on its knees, SA Express has collapsed and SAA is in ICU,” he added.
Public Enterprises spokesman Richard Mantu said the department would not comment on statements made by the union in public.
Earlier this week, the department urged unions to negotiate in “good faith.” He added that some unions were working together with “some opposition parties” to undermine the postponement agreement and ultimately undermine the business bailout.
SACCA president Zazi Nsibanyoni-Mugambi said the union opposed the department’s statement.
