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BusinessLive reports that the SA Airways (SAA) business rescue practitioners (BRPs) have been granted leave to appeal against a labour court judgment that determined that they were not entitled to retrench employees before finalising the business rescue plan.
SAA has been in business rescue since 5 December, but the BRPs, Siviwe Dongwana and Les Matuson, have not yet produced a final business rescue plan. In April, after being informed that the government had no more money available to restructure the airline, they issued notices of impending retrenchments at the airline. The notices were set aside by the Labour Court after an application by the National Union of Metalworkers of SA and SA Cabin Crew Association. But the BRPs have contended that “given the disputes of law ... there is a reasonable prospect that the facts would receive a different treatment by the labour appeal court”. They have also argued that “the matter is of significant public interest and importance and that the judgment in the labour court is in conflict with an earlier judgment of the same court.” In other instances of business rescue, retrenchments have occurred before the acceptance of a final rescue plan. With no new funding in place, the BRPs say they will finalise a plan to wind down SAA by 30 June.
- Read the full original of the report in the above regard by Carol Paton at BusinessLive
See too, Labour Court rules in favour of appeal by SAA and BRPs, on page 9 of Business Report of 26 May 2020
Get other news reports at the SA Labour News home page