Image: SABC NewsSAA workers salaries have not been paid in eight months.
A showdown is expected between government and trade unions over unpaid salaries at the South African Airways (SAA).
There are concerns that the likelihood of a messy court battle would further complicate efforts to rescue the struggling airline.
State-owned SAA has not made a profit in almost a decade and the COVID-19 pandemic has worsened its financial situation. It was placed under voluntary business rescue in December last year.
Earlier this week, the Department of Public Enterprises announced the appointment of a new SAA board. Some unions have made a counter-proposal to the DPE for workers to be paid three months’ salary now, with the remainder deferred until the airline gets a promised bailout from the government and a restructuring plan can be implemented.
Image: SABC NewsSAA has not made any profit since 2011.
The Department of Public Enterprises says the newly appointed South African Airways (SAA) Board, comprising of six non-executive members, will be charged with ensuring the smooth implementation of the rescue plan and restructuring of the embattled airline.
The Board was announced on Wednesday.
The Department says the Board will work to restore proper governance at SAA.
The Board will be led by Geoff Qhena, a qualified Chartered Accountant and former CEO of the Industrial Development Corporation.
Other Board members include Peter Tshisevhe, a mergers and acquisitions lawyer; June Crawford, an aviation and tourism professional; Bembe Zwane, an aviation entrepreneur; Edna van Harte, a Military Science academic and Nick Fadugba, an aviation professional.