Business Maverick: Brinkmanship as SAA and unions head for showdown in latest ailing SOE scrap

Finance Minister Tito Mboweni has previously signalled that SAA, which is insolvent after losses amounting to R28-billion over the past 13 years, was no longer a sacred cow that was going to suck state cash endlessly with no return. Unions may now push the company beyond the point of no return, which would give Mboweni at least something to show the ratings agencies when he presents his Budget in February.

The airline said it had scheduled a meeting for Thursday which would “hopefully resolve the issue” in which case they might reinstate flights. There are are also ongoing wage talks. SAA is offering a 5.9% increase, subject to the availability of funds from lenders, while Numsa and Sacca are demanding hikes of 8%. About 3,000 of the airline’s 5,000-strong workforce are members of Sacca or Numsa.

SAA has long been a drain on the public purse which, as Mboweni noted in October, subsidises the “middle-class and wealthy flying around the country and other parts of the world, rather than the ordinary workers who sit in old trains from the townships every day, often getting stuck and being late for work”.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

SAA sticks to its guns on restructuring | IOL Business ReportSAA interim chief financial officer Deon Fredericks said the airline’s labour and fuel expenses needed to be reduced, because they were unsustainable. busrep
Source: IOL - 🏆 46. / 51 Read more »

SAA cancels flights in light of strike threat, Comair makes a plan | IOL Business ReportSAA spokesperson Tlali Tlali said the airline was putting its customers first and regretted the inevitable inconvenience caused by the cancellations.
Source: IOL - 🏆 46. / 51 Read more »

SAA to offer striking employees revised wage hike at emergency meeting | IOL Business ReportSAA said it would offer unions a revised wage increase in a bid to avert a strike that has forced the airline to cancel domestic and international flights scheduled for Friday. busrep
Source: IOL - 🏆 46. / 51 Read more »

SAA workers paying the price for years of mismanagement - DA | IOL Business ReportWorkers at national carrier South African Airways who face imminent job cuts are paying the price for years of graft and mismanagement. busrep
Source: IOL - 🏆 46. / 51 Read more »

SAA says it could cut more than 900 jobs | IOL Business ReportSouth African Airways could cut more than 900 jobs as it restructures to stem severe financial losses, it said in a statement.
Source: IOL - 🏆 46. / 51 Read more »