BL Premium reports that the government has not given up on saving SA Airways (SAA) and told employees on Tuesday it wanted to work together with them to establish “a new financially viable airline”.  

This was despite the carrier’s business rescue practitioners having set in motion the structured winding down of the airline because the government would no longer be funding the rescue process.  The unions and representatives of non-unionised employees held talks with Department of Public Enterprises (DPE) Minister Pravin Gordhan, Labour Minister Thulas Nxesi and Tourism Minister Mmamoloko Kubayi-Ngubane on Tuesday.  After the meeting, the DPE said:  “There was consensus that the unions would work with the government to ensure that a new financially viable and competitive airline emerges from the business rescue process; that a consultative forum be established to advance dialogue and consultation on the process ahead; that there will be a sharing of ideas on how best to ensure the wellbeing of employees at this challenging time; and that there must be no dependence on the fiscus.”  It added that the unions agreed that finding a solution for SAA would mean some job losses and the staff who remained behind would need to sacrifice some of the present “unaffordable arrangements”.  The unions were asked to submit their proposals on the restructuring of the airline and the future of jobs going forward.

• Read the full original of the report in the above regard by Genevieve Quintal at BusinessLive (paywall access only)
• See too, South Africa aiming for new viable airline from SAA business rescue, at Moneyweb

Get other news reports at the SA Labour News home page