(4 minutes read)
· The business rescue practitioners of South African Airways
offered severance packages at the end of this month to all staff at
the troubled airline.
· As a part of the proposal, more than 4,700 employees will get
as part of their severance package one week’s remuneration per
completed year of service; payment of one month’s remuneration during
the notice period, irrespective of any other contractual provisions;
payment for accrued, untaken annual leave; and a prorated 13th cheque
wherever applicable.
The business rescue practitioners of South African Airways offered
severance packages at the end of this month to all staff at the
troubled airline. The airline failed to get any additional support
from the government. It has asked for a support of R 10 billion to
bailout the airline from the Department of Public Enterprises. The
severance package was offered after the practitioners realized that it
could not turnaround the airlines as a part of the business rescue
process.
As a part of the proposal, more than 4,700 employees will get as part
of their severance package one week’s remuneration per completed year
of service; payment of one month’s remuneration during the notice
period, irrespective of any other contractual provisions; payment for
accrued, untaken annual leave; and a prorated 13th cheque wherever
applicable. To realize these resources, SAA will have to dispose of
its assets.
However, the National Transport Movement (NTM) has countered the offer
proposing that the services of all fixed-term contractors and
consultants be terminated on 30 April. It also wants employees older
than 55 years old to be granted early retirement with an added
incentive like a 6-month salary. Voluntary severance packages offered
to all its other members should be at least three weeks’ salary for
each year completed instead of one week as worked out by the
airline. SAA Pilots Association is still studying the proposal so
also the National Union of Metalworkers of SA (Numsa) and its
coalition partner the SA Cabin Crew Association (Sacca).
