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Seven labor groups representing South African Airways workers who have not received their pay since March have agreed to accept a three-month pay settlement offer, a move that will help the government’s efforts to reactivate the bankrupt state airline.
Members of the groups, including the South African Union of Transport and Allied Workers and the Solidarity Union, will also receive a balloon payment related to a raise owed to them and part of a year-end bonus, the Department of Public Enterprises. it said in a statement Thursday.
SAA, which last made a profit in 2011, filed for bankruptcy a year ago. While the National Treasury has set aside R10.5 billion to help the airline fly again, efforts to resuscitate it have been hampered by the Covid-19 pandemic and a resulting decline in demand for air travel.
“The funds available by the government are limited and are focused on restructuring South African Airways and restarting operations at the airline and subsidiaries,” the department said. “The availability of these funds is the result of the government having to tighten its belt to make the restructuring possible.”
Three of the major unions representing SAA workers: the South African National Metalworkers Union, the South African Cabin Crew Association and the South African Pilots Association rejected the state’s offer of a wage settlement.
© 2020 Bloomberg
