Today's Labour News

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saa thumb medium95 76BusinessLive reports that just days after getting a R5bn bail-out from National Treasury‚ it has been reported that South African Airways (SAA) is spending millions on executives and consulting firms.  

Recently appointed CEO Vuyani Jarana said increased spending was needed to address a skills shortage at the airline‚ according to a report in the Mail & Guardian on Friday.  The newspaper reported that there had been seven "expensive new appointments"‚ some executive positions had been upgraded and that R25m was being paid to Deutsche Bank to help restructure the airline’s debt.  "This is at a time when the airline‚ which reported losses of R5.6bn in the 2016-17 financial year‚ has shed a staggering R3.8bn in revenue by cutting several domestic and international routes‚ and is paying for at least 50 pilots and cabin crew who have no work to do‚" the M&G reported.  Some of the staff were reportedly being paid salaries of between R4.2m and R6m a year.  SAA‚ through spokesman spokesperson Tlali Tlali‚ said the airline would not comment on confidential employee remuneration and defended the use of consultants‚ saying the airline did not have the capacity to restructure its R9.2bn debt.

  • Read this report in full at BusinessLive
  • Read too, Broke SAA goes on spending spree, at Mail & Guardian
  • And also, Jarana defends decision to spend big money on hiring new executives, at EWN

Get other news reports at the SA Labour News home page