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SAA BRPs to enter talks with employees over retrenchments

SAA's business rescue practitioners said that the consultations were imminent and all recognised unions had been informed.

FILE: Numsa and South African Cabin Crew Association (Sacca) members picket at the SAA Airways Park in Kempton Park on 15 November 2019. Picture: EWN

JOHANNESBURG - SAA’s business rescue practitioners have given notice that the airline would now enter into talks with employees regarding retrenchments.

The practitioners said that this was under Section 189 and 189A of the Labour Relations Act.

They said that the consultations were imminent and all recognised unions had been informed.

SAA has been struggling to keep its planes in the air and has already cancelled a number of local and international routes.

In a statement, the business rescue practitioners said that the airline had experienced numerous financial and business challenges, and cumulated losses of some R26 billion over the past six years.

They also said that sales had declined significantly, with all markets showing negative or minimal growth, within a very competitive market.

Added to this, the recent marked decline in travel due to the COVID-19 virus would further exacerbate matters.

Therefore they said to build a commercially viable business, a fundamental restructuring was needed.