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Fin24 reports that Department of Public Enterprises (DPE) Minister Pravin Gordhan wants to join the Labour Court battle brought by the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) against a backpay settlement offered to SA Airways (SAA) members by his department.
This is shown in documents filed in the case. The unions intend to make an urgent application to the court on 28 January to have the backpay deal that was offered and accepted by many employees declared unlawful or unfair. If their application is granted, they want payment to their SAA members made within seven days. SAA and the airline's business rescue practitioners (BRPs) are named as the respondents in the case. Gordhan, in his capacity as minister, wants to be joined as respondent and will ask the court to dismiss the unions’ application. SAA went into business rescue in December 2019. The BRPs stopped paying SAA salaries in May when they effectively "mothballed" the airline, claiming there was no money left to keep it going. In an affidavit opposing the unions’ application, DPE director-general Kgathatso Tlhakudi pointed out that due to only having R600 million available for payment of back salaries, the DPE was only able to offer employees three months' salaries in full and final settlement. In fact, a settlement agreement to that effect was signed by various other trade unions, as well as by a large number of members of Sacca and Numsa, in their individual capacities. So far, 3,599 of the 4,597 SAA employees had either individually or through their own trade unions signed the settlement agreement. The BRPs also intend to oppose Numsa and Sacca's application, according to court documents as filed.
- Read the full original of the detailed report in the above regard by Carin Smith at Fin24
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