Today's Labour News

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saa thumb medium95 76Fin24 reports that in the midst of facing a "sudden deterioration" in its finances following strike action, South African Airways (SAA) has paid its employees their November salaries.  

The national carrier last week warned that November salaries might not be paid on schedule.  Spokesperson Tlali Tlali had advised that the airline was working to secure R2bn in working capital to fund its daily operations, inclusive of employee salaries.  On Saturday morning, Tlali confirmed the full salaries had been paid.  The airline's finances suffered a knock when employees belonging to the National Union of Metalworkers of SA and the SA Cabin Crew Association embarked on an eight-day strike against retrenchments and for salary increases.  According to SAA, the strike cost it about R50m per day.  With the help of the CCMA, the unions and SAA eventually reached a wage deal on 22 November 2019.  Just days after, the Department of Public Enterprises issued a statement saying that the strike and the consequential cancellation of flight bookings at the airline had led to a deterioration of its finances.  Last week, the travel insurance divisions of both Santam and Hollard withdrew insolvency benefit cover on SAA tickets.  Similarly, insurance group Hollard also withdrew insolvency benefit cover.  The withdrawal of the benefit cover, prompted travel group Flight Centre to stop selling SAA tickets.

  • Read the full original of the report in the above regard by Lameez Omarjee at Fin24
  • Read too, Gordhan says SAA in ‘intense discussions’ with lenders, calls on public to buy tickets, at Fin24

Get other news reports at the SA Labour News home page