Today's Labour News

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saa thumb medium95 76Bloomberg reports that SA Airways (SAA) is offering surplus pilots and cabin crew to major global carriers as part of a bid to cut costs and secure alliances in its three-year turnaround plan.  

CEO Vuyani Jarana said in an interview that the unprofitable state-owned carrier needed fewer staff of its own as it scrapped under-performing routes, and viewed the experienced personnel as a path to discussions with potential partners.  “The hiring airline gets ready-made skills and we benefit from a reduction in overheads without people losing jobs.  We’ve got things they need, but also if they’re able to come through for us, then it’s a win-win.”  Talks have been held with Kenya Airways, Emirates and others.  One goal of striking partnerships would be to tap markets SAA doesn’t serve.  .  Staff could take up temporary or permanent contracts elsewhere and return if and when SAA resumed growth, according to Jarana, who said it would be “great” if transfers alone could shrink the company to the right size.  He wouldn’t say how many pilots and flights attendants might lose their jobs or be available for transfer.  Outright firings stand to be costly and damaging.  Jarana also declined to comment on the possibility of SAA taking over its Mango low-cost affiliate and rival state-owned operator SA Express Airways, which was grounded on 24 May, saying the issue was not in the company’s hands at the moment.

  • Read this report by Kaye Wiggins in full at Moneyweb

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