Solidarity2The Citizen reports that Solidarity believes the only way to rescue the financially haemorrhaging SA Airways (SAA) is to have it placed under forced business rescue.  

Yet the trade union expects fierce opposition from government against its historical court application.  If the application succeeds, SAA will become the first ever state enterprise to be placed under business rescue and it could have implications for other ailing state entities such as Prasa and Eskom.  Solidarity’s CE Dirk Hermann said court papers would be lodged next month and the union would in the coming month campaign to obtain mandates from thousands of taxpayers to become part of the lawsuit.  A number of civil organisations have already indicated they want to join the lawsuit as friends of the court.  “The purpose of business rescue is to bring stability and sustainability to the company and the workers…  It’s not just workers’ interests that are at stake, but public interest too,” Hermann said.  The head of the Solidarity Research Institute, Connie Mulder, pointed out that SAA has had nine CEOs in nine years and almost as many turnaround strategies, without any positive results.  He noted that SAA’s liabilities exceeded its assets by R17.8bn and it was totally dependent on government loans, which now totalled more than R30bn.

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