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Unions at SAA to use extension to submit improvements on rescue plan

The unions said the plan as is lacked substance and needs to be tested by the labour sector.

FILE: The draft proposal calls for the retrenchment of almost 50% of SAA workers and billions in funding to pay creditors and resume operations post COVID-19. Picture: @flysaa_care/Twitter.

JOHANNESBURG - Unions at South African Airways (SAA) on Monday said they would use the extension granted by creditors to submit improvements and proposals to the current draft business rescue plan.

The unions said the plan as it was, lacked substance and needed to be tested by the labour sector.

Government, creditors and unions were expected to vote on a final business plan on Monday to save the debt-ridden airline.

The last-minute extension came just as business rescue practitioners were scheduled to produce the final draft on how to turn things around at SAA.

However, a request was made by the National Union of Metalworkers of South Africa, South African Airways Pilots Association and South African Cabin Crew Association for a one-week extension.

The pilot association’s Grant Beck said some information had not been included in the business rescue plan.

The draft proposal calls for the retrenchment of almost 50% of SAA workers and billions in funding to pay creditors and resume operations post COVID-19.

The unions want to have further talks with government and administrators on how the airline can be saved.

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