NUMSA and SACCA update on SAA and SA Express provisional liquidation

28 April 2020

The National Union of Metalworkers of South Africa and the South African Cabin Crew Association (SACCA) had a constructive discussion with Minister Pravin Gordhan today pursuant to the initiative between Labour and Government to avoid the liquidation of South African Airways (SAA) and the liquidation of SA Express (SAX) (which was placed in provisional liquidation today), to find the most optimum solution to SAA and SAX’s current challenges with a view on ensuring their continued existence.

The next 48-hours will be crucial in respect of the aforesaid initiative and all employees are seriously urged not to succumb to misinformation and emotional propaganda deployed to instill fear by one of the BRPs, Mr. Siviwe Dongwana in collaboration with Mr. Lourens Erasmus (the Employee Relations HOD of SAA),  and the undue pressure these persons are placing on employees during this period of uncertainty and anxiety to sign hollow and conditional retrenchment agreements, tantamount to workers being forced to essentially relinquish their rights. This takes place in circumstances where there is an unequivocal commitment from Government to do everything reasonably possible to save SAA in the interests of workers and the country as a whole.  Not only will workers voluntarily put themselves out of employment with no guarantee of any reasonable package, but signing will assist those who are intent on destroying SAA and strip its assets to the detriment of all South Africans.  This is exactly what “winding-down” referred to by Mr. Siviwe Dongwana means. During this extended period of selling off assets astronomical fees for the BRPs will of course still be charged. 

As far as the shocking news regarding SAX’s provisional liquidation in court today is concerned, we have specifically raised this issue with the Minister. We are satisfied that there is a commitment from government to work together with NUSMSA and SACCA (and other unions) in earnest to find a sustainable solution to the challenges facing SAX before the return date in the first week of June 2020 when the court will decide as to whether or not SAX will be placed in final liquidation.

At all times, our mission as NUMSA and SACCA is to do our best to preserve the jobs of workers. We want to assure workers and our members that we will spare no moment in furthering their interests and address their fears under the current difficult and overwhelming conditions.

We also raised with the Minister the fact that we are fully committed to ensuring that both SAA and SAX are restructured, and in this regard, that Government should consider the capitalization of both institutions if we are to get out of the crisis.

We have observed over time that unscrupulous BRPs are abusing the letter and spirit of the Companies Act in respect of rescuing businesses in distress, in order to advance narrow interests and looting instead of rescuing.

During the next 48 hours, various further engagements will continue between Labour and Government on a technical and legal basis to find an appropriate solution which will be capable of constituting a constructive input towards the finalization of a Business Rescue Plan capable of adoption by all stakeholders.

Workers must stand in solidarity as to enable us to do the best we can to safeguard their jobs and rights in these difficult times. The essence of unity for workers at SAA and SAX is to appreciate and to accept that united we stand, divided we fall. The clarion call we are making to all workers at SAA is not to sign Siviwe Dongwana’s death warrant agreement. For workers at SAX, do not listen to the many ‘Johnny come lately’ who suddenly appear to be your friends. Listen to NUMSA and SACCA shopstewards. We have always been there to defend you and your rights, and we shall continue to do so.

Issued by NUMSA and SACCA, 28 April 2020