South African Airways Nears Collapse With Plans to Retrench All Staff
South African Airways (SAA) has been a hot topic in the will-they-won’t-they collapse conversation. The Business Rescue Partners (BRP’s) requested a ZAR 10 Billion bailout from the South African Government-which was denied. As such, the BRP’s have stated that they intend to begin proceedings on retrenching their entire staff by the end of this month.
Spokesperson for the business rescue practitioners-Louise Brugman-confirmed on Saturday that a proposal to retrench the staff had been sent to unions.“A proposal was given to the staffand unions. It has yet to be agreed upon,” said Brugman.
According to the proposal, the settlement package for the staff would be as follows:
- The retrenchment would be seen as a mutual agreement from departure from the company on 30 April 2020.
- Employees are entitled to:
- One Week’s pay per year of employment.
- One Month’s pay in lieu of notice period pay.
- Pay for outstanding Annual Leave Days.
It is also the intention of the BR’s to sell off SAA’s current assets, including their aircraft. This would include the new A350’s they had just received.
Talks about the retrenchments will resume on Monday, 27 April 2020 with the relevant unions.