saa thumb medium95 76Moneyweb reports that the Labour Appeal Court (LAC) has reserved judgment after hearing arguments on behalf of the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) to have the SA Airways (SAA) settlement agreement declared unlawful or unfair.  

In December, more than 81% of SAA employees, including some Numsa and Sacca members, signed a settlement agreement with the airline after R3.5 billion was made available to the business rescue practitioners (BRPs).  The parties that accepted the deal in December included the SA Transport and Allied Workers’ Union (Satawu), the National Transport Movement (NTM), Solidarity and the Aviation Union of SA, as well as three SAA worker formations.  The airline has been in business rescue since December 2019 and has not been operating since April.  The lawyer for the BRPs argued on Monday that the funding provided to the airline in November by the government was provided with strict conditions, including that workers would agree to a compromise which would see them forego some funds owed to them.  But, the lawyer for Numsa and Sacca argued that the government as the shareholder could not unilaterally decide to change the conditions of the airline’s business rescue plan, which was agreed to by creditors in July last year.  Apart from the above, the two unions also asked the court to compel the BRPs and the state to pay their members a lump sum comprising an agreed-to 5.9% increase backdated to April 2020, as well as an equivalent pro-rata contribution towards a 13th cheque.


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