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Employees signed VSP agreements in August 2020. 17:02
Image: Guillem Sartorio, Bloomberg
South African Airways (SAA) employees who applied for voluntary severance packages (VSP) can expect to receive their funds by the end of January, according to unions at the airline.
The National Transport Movement (NTM) and South African Transport & Allied Workers’ Union (Satawu) have told their members that the R10.5 billion required to fund the SAA business rescue plan and to pay for the VSP has now been made available to the airlineâs rescue practitioners from the Department of Public Enterprises (DPE).
This is unconfirmed as yet by government.
SAA unions want salaries to be paid within seven days Thando Maeko
Picture: Neil McCartney The two unions have suggested that the outstanding balance of five months’ pay be delayed to later in 2021 or that the money owed to employees be turned into equity.
Workers at South African Airways (SAA) have not been paid since March 2020, meaning that by the end of this month they will have been without salaries or benefits for 10 months.
Two labour unions – the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) – now want the the Labour Court to compel the Department of Public Enterprises (DPE) and the airline’s rescue practitioners to pay over three months’ deferred salaries to their members.
South Africa Opens New Battle With Unions Over SAA Airways Salaries bloomberg.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bloomberg.com Daily Mail and Mail on Sunday newspapers.
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Paving way for revival. 15:10
Image: Bloomberg
Seven labour groups representing workers at South African Airways whoâve not been paid since March agreed to accept a settlement offer of three monthsâ wages, a move that will aid the governmentâs efforts to revive the bankrupt state airline.
Members of the groups, including the South African Transport and Allied Workersâ Union and the Solidarity union, will also receive a lump-sum payment related to an increase they were owed and part of a year-end bonus, the Department of Public Enterprises Enterprises said in a statement on Thursday.
SAA, which last made a profit in 2011, was put into bankruptcy protection a year ago. While the National Treasury has set aside R10.5 billion to help get the carrier flying again, efforts to resuscitate it have been hobbled by the Covid-19 pandemic and a resultant decline in demand for air travel.