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SAA’s business rescue practitioners eye UIF surplus to fund job cut packages

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saa thumb medium95 76Business Report writes that the South African Airways (SAA) business rescue practitioners (BPRs) have approached the Unemployment Insurance Fund (UIF) to discuss the possibility of using some of the the R100 billion surplus that the UIF controls to fund inevitable retrenchments at the troubled state-owned airline.  

The BRPs, Les Matuson and Siviwe Dongwana, on Wednesday confirmed that they had held numerous meetings with the UIF to seek ways to handle the retrenchments, which are expected to be finalised within the 60-day consultation process stipulated in the Labour Relations Act.  On Wednesday, the rescuers were locked in meetings with the trade unions that represent the SAA workforce to discuss the process.  Matuson and Dongwana said they would continue to have discussions with other parties to seek solutions to alleviating financial challenges to both SAA and its employees “that may result from retrenchments during the business rescue proceedings”.  However, they said “no agreement whatsoever has been concluded with the UIF to make any funds available for the retrenchments of any SAA employees” at this stage.  SAA employs 5,146 workers.  In December, the airline was placed in business rescue following a shortage of funding for its operational expenses.  Democratic Alliance (DA) spokesperson Alf Lees said the discussions between the BRPs and the UIF were unwarranted.  “There can be absolutely no special deal between the bankrupt SAA and the UIF in order for the national carrier to get access to the UIF’s coffers,” Lees said.

  • Read the full original of the report in the above regard by Siphelele Dludla at Business Report
  • Read too, Business rescue practitioners in talks with UIF over cash-strapped SAA, at TimesLIVE


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