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· The insolvency practitioners of SAA, Matuson and Associates, incorporated a range of benefits in the amended rescue plan for the employees, which is construed as concession to the trade unions, who blocked the earlier voting on the plea that the rescue package did not take into account their interests adequately
· It is reported that the restructured SAA will still retain 1 000 staff members of its 4 700-strong workforce.
· The retained 1 000 staff will be placed on a temporary training or lay-off scheme for a year, during which time they will receive financial assistance under UIF, as well as pension and medical aid payments
South African Airways employees may have the last laugh if the news about the rescue plan is right. It is reported that they would get a better deal under amendments to the proposed business rescue plan. The
stakeholders will be voting on the amended package on 14 July. The rescue plan is not voted and passed, the airline faces the prospect of liquidation.
The insolvency practitioners Matuson and Associates incorporated a range of benefits in the amended rescue plan for the employees, which is construed as concession to the trade unions, who blocked the earlier voting on the plea that the rescue package did not take into account their interests adequately.
It is reported that the restructured SAA will still retain 1 000 staff members of its 4 700-strong workforce. The retained 1 000 staff will be placed on a temporary training or lay-off scheme for a year, during which time they will receive financial assistance under UIF, as well as pension and medical aid payments. SAA will contribute a maximum of R4 650 per month for every employee under training or temporary layoff towards their pension, UIF and company medical aid. This is an added provision, which was not there in the earlier schemes.
The South African Cabin Crew Association has advised members to acceptseverance packages. About R2.2 billion has been put aside to fund the severance packages. Further, retrenched employees will receive full payment of their post-commencement claims. That way, they will be in a better financial position than in liquidation. The retained employees will continue to be employed and receive their respective salaries.
Lenders will exercise their right to utilize the government guarantee scheme if no payment takes place by 31 August 2020 in terms of creditor’s claims. It also stipulates that no assets of the airline would be made available to pay creditors’ claims in terms of the business rescue plan. It is expected that the amendment business rescue plan may get the nod of the unions since it seeks to protect the interest of all, while experts say that employees’ are better off in the new scheme.
