Fin24 reports that trade union Solidarity plans to go to court in an attempt to have embattled national carrier South African Airways (SAA) placed under business rescue.
The union wrote on Friday to President Cyril Ramaphosa, Finance Minister Nhlanhla Nene and Minister of Public Enterprises Pravin Gordhan to invite them to join the application. As of Sunday afternoon, neither the president nor the two ministers had yet publicly responded. In its letter Solidarity argued that SAA did not have "reasonable prospects" of generating growth or profits based on its recent financial performance. "We are of the view that in order to sustain the job security of our members, in the interest of the taxpayer of South Africa and in the interest of SAA, that the institution of business rescue proceedings have become inevitable," the letter reads. The union argued that the only way that SAA could become a sustainable business was to privatise it, either wholly or in part.
- Read this report by Jan Cronje in full at Fin24
- See too, Solidarity concerned SAA management, financial models unsustainable, at EWN
- Read Solidarity’s press statement in this regard at Solidarity online
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