NEWS & ANALYSIS

SAA BRP plan extension another opportunity – NUMSA & SACCA

Practitioners can now incorporate input of all stakeholders before final plan is published

NUMSA and SACCA update on SAA and SA Express

9 June 2020

The National Union of Metalworkers of South Africa and the South African Cabin Crew Association (SACCA) have noted the decision by the High Court to grant an extension to the provisional liquidation order which was expected to have been made final today on SA Express. As NUMSA and SACCA we remain vehemently opposed to the liquidation of the airline. We believe that SA Express is a viable airline that can be saved, and every effort must be made to find alternatives. The judge granted the order on the basis that we approached the BRPs and the Department of Public Enterprises (DPE) to engage and explore the possibility of an investor purchasing a stake in the airline.

NUMSA and SACCA have secured a possible investor from the UAE who has expressed an interest in the airline. This extension will allow the investor to meet with DPE and hopefully come together on an agreement about the future of the airline. We remain committed to saving both SAA and SA Express and we will continue to do everything possible to save these airlines and to save jobs. We understand the frustration of employees at SA Express who have not had an income since the end of February, and have been protesting out of frustration. This is why we are doing everything possible to find alternatives to liquidation, because we know it would worsen the situation for workers and their families’.  The request was granted and the provisional liquidation order has been extended to the 9th of September 2020.

Update on SAA Business Rescue Plan

NUMSA and SACCA sent a letter to the Department of Public Enterprises (DPE) last week Friday where we objected to the publication of the Business Rescue Plan and requested an extension on its publication. This is because the draft plan which was leaked to the media does not reflect the input of unions and the proposals we submitted as part of the Leadership Compact Forum with the DPE. The leaked plan is not a rescue plan and is not a viable turnaround plan for South African Airways (SAA).

We also made it clear in our correspondence that there must at least be an unequivocal undertaking to provide Labour with a final copy of the plan to be published, prior to publication, for final comment.

The request for an extension is not so that the BRPs can continue to loot the airline, but rather it is an opportunity for them to incorporate the input of all stakeholders before the final plan can be published. We have noted that our recommendations have been accepted and this is why the publishing of the plan has been postponed to the 15th of June 2020.

Issued by NUMSA and SACCA, 9 June 2020