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JOHANNESBURG, May 3 (Reuters) – South African Airways could begin firing its 5,000 employees starting May 12 if unions and workers do not accept a proposed severance agreement, managers trying to rescue the airline said Sunday. .
SAA entered a local form of bankruptcy protection in December in a latest effort to save or liquidate the national operator, which has not generated a profit since 2011.
The airline has been on state life support that has cost the South African Treasury more than 20 billion rand ($ 1.06 billion) in the past three years.
Rescue specialists Les Matuson and Siviwe Dongwana last month proposed severance packages for all personnel, after the government said SAA would not receive any more cash.
But the South African National Metalworkers Union and the South African Cabin Crew Association went to a labor court to try to block the cuts.
“In case the workers do not accept the agreement, the BRP (business rescue professionals) reserve the right to offer it … to all employees, regardless of whether they belong to a union or not, for acceptance individual, “between May 8 and May 11, the letter to staff reviewed by Reuters said.
“Where no agreements have been reached, … the employment of those employees may be terminated for operational reasons beginning May 12,” he added.
South Africa’s public business ministry still wants to save an SAA rump in one form or another, although given that the coronavirus pandemic devastated the airline industry globally, it is unclear what that would mean.
The rescue specialists added that they would oppose the two unions’ request in court because “if it succeeds, it would further contribute to the financial and other challenges facing SAA.” ($ 1 = 18.8378 rand) (Report by Alexander Winning; Editing by Tim Cocks; Editing by Alexander Smith)
