SAA pilots made unaffordable demands for severance packages - DPE
The Department of Public Enterprises (DPE) said that SAA pilots had been making unreasonable and unaffordable demands, with some wanting to secure severance packages of up to 60% more than what's being offered.
JOHANNESBURG - The Department of Public Enterprises said that SAA pilots had been making unreasonable and unaffordable demands, with some wanting to secure severance packages of up to 60% more than what's being offered.
The department said that other unions representing SAA staff had agreed to accept the packages, which would result in about 2,700 employees being retrenched.
Creditors will have the final say at a meeting next week when they vote on a controversial business rescue package that the administrators have warned will mean government finding an additional R10 billion.
The department's acting Director-General Kgathatso Tlhakudi: "We could not make similar progress with the pilots, who are getting quite a large portion of the severance package budget. They wanted further improvements in the severance package for their members, in some instances they wanted up to 60% improvement."
He said that they needed to look at the bigger picture.
"We needed to keep our eye on the airline's rescue to make sure that it is still viable and sustainable, so we could not burden it with undue levels of demands going forward."