Labour Court dismisses SAA’s BRPs bid to overturn ruling halting retrenchments
The National Union of Metalworkers of South Africa and South African Cabin Crew Association took the practitioners to court last month to halt the layoff of workers.
JOHANNESBURG - The Labour Appeals Court has dismissed an application by South African Airways (SAA) business rescue practitioners (BRPs) to overturn a ruling preventing them from beginning the retrenchment process at the broke airline without adopting a business rescue plan.
The National Union of Metalworkers of South Africa (Numsa) and South African Cabin Crew Association took the practitioners to court last month to halt the layoff of workers.
The SAA business rescue plan is expected to be voted on next week.
The Labour Appeals Court found that the decision by the business rescue practitioners was procedurally unfair and that it must be withdrawn.
The court also criticised practitioners Les Matuson and Siviwe Dongwana’s delay in publishing the plan even.
Numsa’s spokesperson Phakamile Hlubi-Majola said: “Although the appeal was heard after the BRPs at SAA finally published a plan, it was important for us to defend the decision of the Labour Court because it had far-reaching implications for workers and the case is important for setting down clear guidelines for BRPs as a whole.”
If the plan is adopted next week, it paves the way for a restructuring process to begin at SAA, which includes more than 2,700 people losing their jobs.