This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
Reuters reports that the Competition Tribunal on Friday approved a rescue deal for Comair on condition that the carrier freezes job cuts for three years and investors allocate shares to a special purpose black empowerment vehicle.
Comair, which operates the British Airways franchise in SA and budget airline Kulula.com, was forced into business rescue in May after the Covid-19 lockdown halted its operations two months earlier. The business rescue practitioners presented a plan in September which involved investors injecting fresh equity into the company. SA Bidco, which does not control any other firms, was created by the investors for the purpose of the Comair transaction and consists of former board members and executives. SA BidCo intends to reduce Comair’s staff complement by 200, based on operational requirements, leaving total employment at about 1,681 aftyer the merger. The Tribunal indicated that the company had undertaken not to cut jobs for three years from the resumption of its operations, while making offers to the 200 employees it planned to lay off when jobs become available. The new entity will also allocate a portion of its shares to a special black empowerment ownership vehicle.
- Read the full original of the report in the above regard by Engineering News
Read too, Comair a step closer to taking off again, at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page