BusinessLive reports that the SA Airways (SAA) business rescue practitioners (BRPs) have laid out the process for full termination of all employees at the end of the month, but only if funds exist at the end of the winding down of the company.  

SAA is insolvent and its liabilities completely outweigh its assets.  So the airline’s 10,000 employees stand to get no severance pay unless the government can ensure there is money available.  In a proposal sent to unions, the BRPs, Les Matuson and Siviwe Dongwana, indicated that in order for SAA to pay severance packages the company was required to sell and dispose of its assets.  They indicated that the severance packages were conditional upon assets being “realised at the value capable to cover the severance packages”.  If that condition is met, SAA will pay the severance packages to employees on a monthly basis over a period of six months, once the sale of assets has been concluded.  Earlier this week, the government told the BRPs that it was unable to provide the airline with further funding.  In light of government’s decision, in a proposal to unions, the BRPs asked staff to agree to the termination of their employment, due to SAA’s operational requirements, on 30 April.

• Read the full original of the report in the above regard by Genevieve Quintal at BusinessLive
• Read too, SAA business-rescue practitioners offer severance settlement agreement for all staff, at Mail & Guardian

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