Four Smaller SAA Unions Accept Severance Packages

Four South African Airways unions and staff representatives have expressed an intention to sign voluntary severance packages offered as part of the airline’s business rescue and restructuring process.

The three main unions, however, have so far not accepted the packages. These are the National Union of Metalworkers of South Africa (Numsa), the SA Cabin Crew Association (SACCA) and the SAA Pilots’ Association (SAAPA).

The acceptance by the four smaller unions was announced today by the Department of Public Enterprises, which has encouraged unions to accept the business rescue plan in order to avoid the liquidation of the airline.

The unions are the National Transport Movement (NTM), South African Transport and Allied Workers Union (SATAWU), Aviation Union of Southern Africa (AUSA), Solidarity, and representatives of SAA non-unionised managers and ground staff.

“[The VSPs] can be offered to employees immediately after the creditors vote on the Business Rescue Plan on Tuesday 14 July 2020,” read a DPE statement.

The package includes one week calculated per year of completed service, one-month notice pay, accumulated leave paid out, a thirteenth cheque and a top-up of severance packages calculated on a back-dated 5.9 percent wage increase which was agreed to in November last year.

The SAA BRPs are expected to table a revised business plan next Tuesday that is expected to be voted on by creditors on 14 July.

A vote in favour of the plan by 75% of the voting interests and 50% of the independent voting interests would be required to carry the vote. A vote against the plan would result in protracted and costly liquidation of the airline, something representatives of NTM, SATAWU, AUSA, Solidarity, and SAA staff, said would be a long and painful ordeal.

– With reporting from SAnews.gov.za