Today's Labour News

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saa thumb medium95 76Moneyweb reports that subsidiaries of SA Airways (SAA) are to get around R2.7 billion from the R10.5 billion allocated to the airline to implement its business rescue plan.

SAA Technical (SAAT) will receive R1.663 billion, Mango Airlines R819 million, and Air Chefs R218 million. This follows the tabling of a Special Appropriation Bill by the Minister of Finance on Tuesday. While SAA had been under business rescue since December 2019, its three subsidiaries have not. The SAA business rescue practitioners (BRPs) were therefore not legally mandated to spend any of the post-commencement finance to assist the subsidiaries. SAA exited business rescue at the end of April with the BRPs saying the airline was now “solvent and liquid”. The lack of funding for the SAA subsidiaries and the adverse impact that the Covid-19 pandemic has had on the aviation industry has left the three subsidiaries scrambling for cash. The cash crunch saw Mango abruptly suspending its flights in April following its failure to settle payments relating to passenger service charges and landing and parking fees with the Airports Company of SA (Acsa). The flights however resumed following funding discussions with Acsa and others. SAAT and Air Chefs were unable to pay full salaries to their staff during the hard lockdown in 2020. SAAT staff have only received between 25% and 50% of their salaries every month for the last year. Trade unions Numsa, Saaca and Solidarity had previously reported that there was still no clarity on the payment of salaries at SAAT for May and June.

  • Read the full original of the report in the above regard by Thando Maeko at Moneyweb

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