SAA woes deepen as it’s unable to pay salaries
South African Airways (SAA) has confirmed it will not be able to fulfill salary obligations to employees for November.
The woes of the cash-strapped airline have deepened – now spilling over to employees not receiving their salaries.
In a statement to employees on Thursday evening, the ailing airline's acting CEO Zuks Ramasia says they will keep workers updated on the exact date of payment for November salaries.
“In the interim, you are advised to make arrangements with your financial service provider in respect of your scheduled monthly debit orders.”
A nationwide strike entered its seventh day on Thursday.
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Talks have deadlocked between unions, NUMSA and SACCA – with SAA remaining adamant that the SOE cannot afford the 8% wage increase demanded.
SAA also faces the possibility to be placed under business rescue.
“SAA continues on a critical and sensitive path to secure R2 billion working capital from lenders to fund the day-to-day operations,” says Ramasia.
Government is refusing to throw a lifeline at SAA – saying bailouts have become a ‘moral hazard’.
“We know as a company that we have an obligation to pay salaries timeously and in full. We apologise sincerely for the delay and wish to give assurance that SAA leadership is working tirelessly to secure funding to pay salaries,” says Ramasia.