POLITICS

SAA workers informed of retrenchments through the media – NUMSA & SACCA

Union says this is a veiled threat to get workers to drop their demands for wage increases

NUMSA and SACCA condemn SAA for informing workers of retrenchments through the media

12 November 2019

The National Union of Metalworkers of South Africa (NUMSA) and the South African Cabin Crew Association (SACCA) condemn South African Airways (SAA) for informing workers of its intention to restructure and retrench workers through a media statement. Yesterday the management of SAA issued a media release where they claim that the acting GCEO “ZuksRamasia has commenced a consultation process with all employees in line with section 189 of the Labour Relations Act.”

We can state categorically for the record that no such consultation process ever took place. We were informed through a media statement of their intentions. We have been engaging with SAA management on wage talks and the last meeting took place yesterday. The purpose of the meeting was to discuss wage increases. We have placed our demands on the table and SAA is unwilling to consider our demands because they claim they do not have money. Pilots at SAA recently received a 5,9% wage increase because of an agreement they have signed with SAA. But our demands for an increase for an 8% have been denied. This is why we are questioning the timing of this announcement. It is a veiled threat to get workers to drop their demands for wage increases and for the removal of the SAA board. They want to strike fear into the hearts of our members. We condemn the management with the contempt they deserve!

We have also raised the issue of forensic investigations which SAA paid millions for, but has not yet acted on. We want to know why management has been refusing to implement the findings of the Open Waters report into SAAT and the Ernst and Young report, as well as other forensic investigations into corruption at SAA. At the meeting they were unable to explain why senior executives named in these various forensic reports have not been suspended in line with the recommendations made in the report.

It is common knowledge that SAA is to embark on restructuring. This was discussed even at the time when the former GCEO Vuyani Jarana was still running the airline. And at a meeting with management last week Thursday, SAA confirmed that the organizational design had not yet been completed. So we are asking ourselves on what basis are they serving us with section 189 to restructure, when they have not completed the work to redesign the organization? What will the restructuring be based on if they have not yet completed that process? They cannot embark on section 189 without having first completed this process.

Their intention is also to run away from holding senior executive management and board members to account for corruption and theft at the airline. SAA management is under pressure because we keep demanding the resignation of the entire board especially in light of its refusal to act in line with recommendations made by forensic reports, to rid the airline of corrupt management. It is clear the board wants to protect certain high ranking managers for actively destroying the airline after years of systematic looting at the national carrier.

Their actions have resulted in the airline being bankrupted and now workers must pay through job losses for the greed and corruption of the board and some of its senior executives. This is outrageous!

The board of SAA has never been committed to turning the airline around. There have been eight Long Term Turn Around Strategies which have been designed, and not one of them has been implemented. The last strategy was designed by the former Group CEO Vuyani Jarana and he resigned out of frustration because government the shareholder refused to fund it. The board and management of SAA have wasted money which was given to it by the taxpayer to bailout the airline. If SAA has no money it is because it was stolen or mismanaged by senior executive management, while the board looked on. 

Vusi Pikoli the Chief Risk and Compliance Officer at the airline was appointed by Jarana, because the GCEO was determined to recover all monies which had been looted. Pikoli is focusing on criminal and civil cases linked to corruption at SAA. The executive management at SAA, in its HR and ER division still has a duty to act by suspending those who have been implicated in corruption, but it has refused to do so. Instead, the same executives continue to work at SAA in spite of serious corruption allegations hanging over their heads.

What is to be done?

The board has consistently refused to implement the findings of the forensic reports and as a result they have cost SAA millions. We repeat the demand for the board to be scrapped because they have proven once again through their ineptitude that they are not fit to run the airline, and therefore should not hold these positions. In the meantime, we will be preparing workers for the mother of all strikes at SAA at all its operations nationally. We have already received a strike certificate and we have concluded the balloting process.

We urge all our members and workers in general to unite against this vicious attack by a ruthless management and board. It is only through the unity of the working class that we force change.

Aluta continua!

The struggle continues!

Issued by PhakamileHlubi-Majola on behalf of NUMSA and SACCA, 12 November 2019