Numsa, Sacca feel vindicated by latest ruling on SAA retrenchments
Business rescue practitioners at the troubled airline wanted the court to set aside a court decision to halt retrenchments at SAA until a business rescue plan is adopted.
JOHANNESBURG – The National Union for Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) said that they had been vindicated by the decision of the Labour Appeals Court which dismissed the South African Airways (SAA) business rescue practitioners application to begin retrenchments at the broke airline.
The practitioners wanted the court to set aside a court decision to halt retrenchments at SAA until a business rescue plan is adopted.
The court delivered the judgment on Thursday.
The business rescue practitioners’ plans to begin retrenchments at SAA have been dealt a blow by the ruling.
Numsa and Sacca argued that it was unlawful and unfair to start laying off workers while there was no business rescue plan in place.
The court sided with the unions, agreeing that the practitioners had failed to produce a business plan speedily.
Numsa’s Phakamile Hlubi-Majola said: “There are many companies which have filed for business rescue in our country. The judgment effectively means that business rescue practitioners may not be used by employers to prune the business by cutting jobs and the fundamental challenges threatening the companies’ survival must be addressed in the business plan.”
The ruling comes just days after Numsa and other unions agreed to accept voluntary severance packages for laid-off employees.