Today's Labour News

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MangoBL Premium reports that state-owned low-cost airline Mango is unlikely to be able to pay the salaries of its 500 or so employees from May as it battles to stay afloat.

The Department of Public Enterprises (DPE) said at the weekend that it was in discussions with the Mango board and the interim board of parent company SA Airways (SAA) about repositioning the national carrier’s subsidiaries in light of delayed government funding. The delay means Mango has to stop operating from 1 May and go into business rescue until July while it waits for funding. SAA has been in business rescue since December 2019. Mango operates a small fleet of 14 Boeing aircraft. It announced at the weekend that it would temporarily suspend flights amid a cash crunch. According to industry sources, while April salaries were paid at Mango, there is no money left to cover salaries for May. The National Union of Metalworkers of SA (Numsa), a major union at the airline, blamed DPE minister Pravin Gordhan for the crisis at Mango. Union spokesperson Phakamile Hlubi-Majola claimed on Sunday that his department misled management and workers at SAA subsidiaries that money from SAA’s business rescue was coming. “There was no money for SAA subsidiaries because it was not catered for during the business rescue process. All SAA subsidiaries are in limbo until the money requested from Treasury has been allocated, which will be sometime in June," she said.

  • Read the full original of the report in the above regard by Linda Ensor and Bekezela Phakathi at BusinessLive (paywall access only)

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