Moneyweb reports that the Department of Public Enterprises (DPE) says the bid by the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) to get SA Airways (SAA) to pay salaries to their members could put the airline’s business rescue process in jeopardy.
The two unions are heading to the Labour Court on Thursday to compel the DPE and SAA’s business rescue practitioners (BRPs) to pay over three months’ deferred salaries to their members. The unions also want their members to be paid a lump sum consisting of an agreed-to 5.9 % increase backdated to April 2020, as well as an equivalent pro-rata contribution towards a 13th cheque. These terms are the same as a settlement agreement the airline struck with four other unions at the airline in December. Numsa and Sacca declined the offer, but now want the failure of the DPE and BRPs to pay their members the same monies paid to members of other unions to be declared unfair and unlawful. But in court papers, DPE director-general Kgathatso Tlhakudi said the unions’ claim “re-opens the door for a potential claim … for salaries in respect of additional months for members and even non-members of Numsa and Sacca who have already signed the settlement agreement and who have been paid”. He added that the airline could be held liable for the payment of salaries out of the business rescue post-commencement financing. More than 81% of employees (3,599 out of a total of 4,597), including some Numsa and Sacca members at SAA, have accepted the DPE’s settlement offer.
- Read the full original of the report in the above regard by Thando Maeko at Moneyweb <https://www.moneyweb.co.za/news/south-africa/court-case-against-saa-may-jeopardise-business-rescue/>
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