Numsa, Sacca threaten legal action to stop liquidation of SAA

The unions say they are exploring their legal option to stop the liquidation of troubled the national airline and SA Express, following the Finance Minister's statement that there will be no more bailouts for SAA.

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JOHANNESBURG – Unions, the National Metalworkers Union of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) say they are exploring legal avenues to challenge Finance Minister Tito Mboweni's call to close down South African Airways (SAA) and SA Express.

Mboweni told Parliament on Friday that there will be no bailouts for the broke state-owned airline, adding that they should be closed.

Creditors, prospective investors, and unions are expected to vote on a controversial business rescue plan which will require billions of rand on 14 July.

The public enterprises department – which is in favour of a turnaround strategy for troubled SAA – recently announced that it received unsolicited proposals from private sector funders, private equity investors, and potential partners for a new national airline.

Meanwhile, government's regional airline SA Express has been placed under provisional liquidation.

Numsa says the finance minister's statement has compromised the independence and credibility of the imminent vote on SAA’s business rescue plan.

The union’s spokesperson Phakamile Hlubi – Majola said: “AS Numsa and Sacca we are going to do everything possible to exercise our legal options and prevent this liquidation. And If that means we have to go to court to do so, then so be it.”

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