4 unions ready to sign SAA severance packages, says Public Enterprises
The Department of Public Enterprises says four unions at South African Airways (SAA) are ready to sign the severances packages on offer as part of the business rescue process.
A creditor's meeting to vote on the future of SAA is set to take place on Tuesday.
The department says during a meeting on Wednesday, the National Transport Movement (NTM), South African Transport and Allied Workers Union (Satawu), Aviation Union of Southern Africa (AUSA) and Solidarity made the commitment to sign the packages.
Three unions, the National Union of Metalworkers of South Africa (Numsa), the SA Cabin Crew Association (SACCA) and SAA Pilot’s Association (SAAPA) have objected to the packages on offer.
Spokesperson Sam Mkokeli says the packages will be offered to employees immediately after the creditor's vote on the business rescue plan.
"The unions and staff representatives said they supported the VSPs, which include one week calculated per year of completed service, one-month notice pay, accumulated leave paid out, a 13th cheque and a top-up of severance packages calculated on a back-dated 5.9% wage increase which was agreed to in November last year.”
He says payments will be distributed to employees if the business rescue fails.
"Should the business rescue fail, the liquidation of SAA will mean that employees would receive up to a maximum amount of R32 000 per employee if there are funds available.
“These payments will only be disbursed once the final liquidation and distribution account has been approved, which can take up to 24 months.”
He added” "As the shareholder on behalf of the government, the DPE believes the approval of the business rescue plan would help creditors and employees become co-creators of a new airline and to ensure a strong base is maintained for the growth of the local aviation industry."
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In a statement on Thursday, the department said it believes that business rescue provides a better outcome than liquidation. Spokesperson Sam Mkokeli says the creditor's meeting to vote on the future of SAA is set to take place on Tuesday. "A vote in favour of the plan by 75% of the voting interests would be required to carry the vote.