Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

saa thumb medium95 76City Press reports that SA Airways (SAA) staff are being offered extremely generous severance packages – averaging R580,000 each – at a total cost of R2.2 billion.  This would include retrospective increases and incentive bonuses, but is still not enough for several trade unions.  

The offer is contained in a confidential letter that acting director-general of public works, Kgathatso Tlhakudi, sent to unions on Tuesday.  The acceptance of the severance packages is a prerequisite for the approval of SAA’s rescue plan, according to which the workforce of the airline will be cut from the current level of about 4,700 to 1,000.  Creditors were meant to vote on the rescue plan on Thursday, but it was postponed after unions and creditors said the plan was deficient.  They are expected to meet again on 14 July.  Although the business rescue practitioners have indicated that government is ready to finance the plan, it is still not clear where the money will come from.  An additional R10 billion would be needed to successfully fund the offer.  Trade union Solidarity has accepted the packages, but Numsa, the SA Cabin Crew Association and the SA Airways Pilots’ Association are still of the opinion that the airline is not offering enough money.  According to the letter, pilots will get on average R1.9 million each, while cabin crew will get R352,000.  Cargo and operations personnel will get R351,000, those who work on the simulators R476,000, office personnel R379,000, and management and management specialists R477,000.

  • Read the full original of the report in the above regard by Antoinette Slabbert at City Press

Get other news reports at the SA Labour News home page