South African Airways is in conflict with labor unions over its plans to reduce its workforce by about a fifth. The air carrier is undertaking a restructuring plan aimed at reducing its operating expenses.
SAA is planning to reorganise all the units except low-cost carrier Mango, Air Chefs and the SAA Technical Unit. This will lead to the dismissal of about 944 workers out of the 5,149 employees in the company.
The South African trade unions are against the airline’s decision as they have accused the airline of failing to consult with the unions.
Mr Sizwe Pamla, the federation spokesperson told Bloomberg that the airline’s announcement was reckless as they can’t just throw away people into unemployment without talks with the unions.
Mr Sizwe further stated that there are alternative options that can be explored.
Ethiopian Airlines and Richard Branson of Virgin Atlantic have expressed their interest in buying a stake in the troubled South Africa Airlines.
Over the past 13 years, South Africa Airways has reported over 28 billion rand of losses. It had recently received a 5.5 billion rand from the government as a strategy to extend maturities on outstanding debt. The airline is yet to agree on a repayment plan with its creditors.
Mr Martin Kemp, South Africa Airway’s acting head of resources told Bloomberg that the restructuring plan is meant to save the airline about 700 million rand a year in cost. and aims to complete the process by the end of March next year.
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