News South African Airways layoff deadline suspended pending court ruling

-

- Advertisment -

South African Airways layoff deadline suspended pending court ruling

News South African Airways layoff deadline suspended pending court ruling

A South African Airways (SAA) plane is towed at O.R. Tambo International Airport in Johannesburg, South Africa, January 18, 2020. REUTERS-Rogan Ward-File Photo

The deadline for South African Airways (SAA) staff to agree layoff terms has been suspended while a judge considers his ruling in a court case brought by two trade unions at the cash-strapped airline.

State-owned SAA has been fighting for its survival since entering a form of bankruptcy protection in December, with its fortunes deteriorating further when the COVID-19 pandemic forced it to halt all commercial passenger flights and the government refused to provide further funding for turnaround efforts.

The administrators seeking to rescue SAA had said on Sunday that unions must agree severance terms by May 8 or a layoff agreement would be offered to all staff. Staff would then have until the end of May 11 to accept severence terms or the airline could start laying off its roughly 5,000 employees.

Efforts by the National Union of Metalworkers of South Africa (NUMSA) and South African Cabin Crew Association (SACCA) to block the job cuts through the Labour Court were opposed in court by the administrators on Thursday and the judge said he would deliver a judgment as soon as practicable.

“In according the appropriate respect to the court and to ensure that our decisions are appropriate, we have decided to suspend the time lines as communicated in our letter and communication dated 3 May 2020, until the court’s ruling has been handed down,” the administrators said in an email sent to SAA staff late on Thursday and seen by Reuters.

The administrators have until the end of the month to draft a business rescue plan for SAA, which has not made a profit since 2011 and has received bailouts worth more than 20 billion rand ($1.1 billion) over the past three years.

Public Enterprises Minister Pravin Gordhan on Wednesday said that the government wanted to avoid a liquidation or fire sale of SAA assets, preferring to see SAA restructured into a new airline.

SAA on Friday said that it will continue to operate repatriation and cargo flights “during the month of May and beyond”.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Recent Updates

Frank Lampard: Edouard Mendy must wait for Chelsea debut

Chelsea fans hoping to see an Edouard Mendy debut this weekend will be left disappointed, Frank Lampard has revealed.After...

Nigerian government distributes food items, diapers to FCT women

The Federal Ministry of Women Affairs on Thursday distributed food items and diapers to encourage women in the FCT...

Police parade 17 teachers, supervisors, principal for exam malpractices

The Police at Force headquarters on Friday paraded 17 suspects including School Principals, Teachers and Supervisors who were caught...

NEPC: Mushroom production can earn Nigeria more foreign exchange

The Nigerian Export Promotion Council (NEPC) says the country can significantly improve on its foreign exchange through investment in...
- Advertisement -

Judicial workers declare two-week strike over fuel price, electricity tariff hike

ReutersIn solidarity with the Nigerian Labour Congress, NLC, and the Trade Union Congress, TUC, staff of the Federal High...

FRSC cautions motorists against driving in flooded roads

File PhotoThe Federal Road Safety Corps (FRSC), Enugu Command, has cautioned motorists against driving in flooded plains, roads and...
- Advertisement -

You might also likeRELATED
Recommended to you