SAA pilots' demands ‘unaffordable’ – Public Enterprises
The Department of Public Enterprises has shot down additional demands made by the South African Airways Pilots Association (SAAPA) as part of the airline’s business rescue process.
The department on Friday described demands as “far more costly, lucrative and financially rewarding for the pilots than any other class of employees at SAA”.
It believes the proposal is not in the best interest of cash-strapped airline, which is currently under business rescue with over 2,700 workers at risk of losing their jobs.
The department's deputy director-general Melanchton Makobe says while SAA pilots make up 13% of SAA staff, they consume 45% of the wage bill.
"The lowest of SAA’s 170 senior pilots earn R3.6 million a year, excluding benefits and incentives. Of the R2.2 billion proposed budget for the VSPs, pilots will get more than R1 billion.”
Makobe says the government is not in a position to accept SAAPA's demands.
"SAAPA’s proposals seek to retain a much larger number of employees than the airline can afford. This goes against the stated goal of ensuring a new, restructured, viable and competitive airline that must emerge from a business rescue process for SAA.”
A creditor’s meeting to vote on the future of the airline is set for Tuesday.
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