SAA’s business rescue practitioners will today (Tuesday) publish the amended plan for rescuing the embattled airline, despite there being no clarity surrounding its funding.
Louise Brugman, spokesperson for the BRPs, has confirmed they plan to publish the plan, but have received no clarity on Treasury’s written presentation to Parliament last week that Government cannot afford to spend more on SAA and that the airline should be closed down. The Department of Public Enterprises, which has been pressurising creditors and employees to accept the business rescue plan, has declined to comment, batting media enquiries back to Treasury, which in turn has stayed silent.
In a figurative throwing up of hands, on Monday evening the DPE called on all trade unions representing SAA staff to meet among themselves to find a solution to the future of the airline. This follows separate discussions between the DPE and all trade unions late last week.
In a statement, the DPE said it had met with Numsa, SACCA and SAAPA on Friday and had addressed their concerns regarding the number of employees to be retrenched and the value per employee of the proposed voluntary severance package (VSP). These three unions, together representing 58% of SAA employees, have so far rejected the plan and the VSP offered.
The DPE earlier met NTM, SATAWU, AUSA, Solidarity and non-unionised staff representatives, who have agreed to the plan and the VSP. Their being paid out, however, depends on 75% of creditors giving the amended business rescue plan the thumbs-up at the next creditors meeting scheduled for July 14.
“The DPE has made it clear to all the unions that the R2,2bn budgeted for VSPs is the best that can be made available when Government is faced with massive financial demands and constraints in the current financial crisis facing our economy. The DPE is not in a position to accede to any further demands from sections of union leadership for additional benefits. The DPE has urged union leaders and employees to accept the voluntary severance packages offered and focus on the social plan that is aimed at equipping individuals to re-enter the job market,” DPE said.
