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saa thumb medium95 76BusinessLive reports that the majority trade unions at SA Airways (SAA) have called the Department of Public Enterprises (DPE) dishonest, and have accused it of derailing the airline’s rescue process.  

The DPE indicated in a statement on Sunday that it had withdrawn from the leadership consultative forum (LCF) it had established with organised labour to develop a new and restructured SAA, and that the unions’ actions had set the airline on the path to liquidation.  This was after the National Union of Metalworkers of SA (Numsa), the SA Cabin Crew Association (Sacca) and the SAA Pilots’ Association (Saapa), alongside several creditors, successfully managed, at a crucial meeting of creditors held last week, to postpone a decision on the business rescue plan until 14 July.  DPE Minister Pravin Gordhan has tried to persuade all parties to support the plan and his efforts included a leadership compact with unions.  Numsa and Sacca accused the DPE of pretending to be serious about building a new airline with a turnaround strategy, when in reality it was actually destroying the airline.  “If anything, what will be left of SAA will not be a vibrant and successful airline but a shadow of the airline as we know it,” they claimed.  The unions said the leadership compact was collapsed on the grounds that unions refused “such an agenda”.  The DPE said that by supporting the bid to adjourn the creditors’ meeting, the unions had contradicted the letter and spirit of the leadership compact.

  • Read the full original of the report in the above regard by Genevieve Quintal at BusinessLive

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