Today's Labour News

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ComairFinancial Mail writes that SA’s aviation sector will emerge from the current economic crisis in a very different shape to what it was a month ago.  

With no commercial flights permitted anywhere in SA for at least the next three weeks, the full impact is hard to gauge.  There are already casualties and more will follow.  Bankrupt state-owned carrier SA Express grounded itself more than a week ago, and while the plan was for SAA’s business rescue practitioners to reveal their turnaround strategy for the airline next week, it’s hard to see a future for it.  In the meantime, private-sector competitor Comair is making cutbacks.  Hours ahead of President Cyril Ramaphosa’s announcement of SA’s three-week lockdown, and days after announcing the sudden departure of two senior executives, Comair revealed that it was embarking on a significant retrenchment process.  How many jobs will be cut is still an open question.  The airline said it was implementing section 189 of the Labour Relations Act, which makes provision for redundancies, as part of a financial recovery plan.  "Despite our efforts over the past few months to preserve cash, maintain liquidity, divestment from nonperforming acquisitions, aggressive cost reduction across the group, taking back control of the fleet and unlocking further operational efficiencies, more remains to be done," said CEO Wrenelle Stander in a statement.

  • Read the full original of the report in the above regard by Bruce Whitfield at BusinessLive


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