Image Courtesy of Esa Alexander. 

Public Enterprises Minister Pravin Gordhan on Saturday morning convened a high-level meeting between senior government leadership and representatives of the SAA unions, including SATAWU, NUMSA, Solidarity, and non-unionised staff.

The purpose of the meeting was to discuss the status of the Business Rescue Process, finalise a Leadership Compact, the process to give input to the Business Rescue Plan and how the impact of the Business Rescue Process on employees can be mitigated. 

In respect of the immediate threat of liquidation, it was agreed with the business rescue practitioners that they would not consider an application for liquidation, and in addition they would suspend the Section 189 process, and offer to employees until the close of business next Friday.

SAA BRPs Les Matuson and Siviwe Dongwana sent out a letter warning all affected parties that the airline could either face retrenchment or total liquidation.

With no revenue from flights due to the lockdown, the BRPs said the company did not have enough money to cover a significant portion of due salaries beyond April. 

President Cyril Ramaphosa placed the embattled airline under urgent business rescue in early December 2019 — almost five months later.

Meanwhile in a statement, the National Transport Movement (NTM) said the BRPs would be meeting the minister on Sunday to speak about the risks that come with delaying the rescue process without any funding.

The DPE will also meet with individual labour representatives to hear their submissions for possible incorporation in the final business rescue plan over the coming week. This will be followed by the BRPs with a rescue plan framework which will inform the final plan.

“It must be noted that the minister reiterated that SAA is bloated, and that job losses were inevitable but it is upon the entire leadership of SAA in their respective levels and formations to mitigate and minimise job losses,” said NTM president Mashudu Rapheta said.