SAA: Over 4 000 jobs on the line after BRPs issue retrenchment notice

South Africa, to put it lightly, is in shambles in 2020. Yet another bomb was dropped after South African Airways (SAA) business rescue practitioners (BRPs) announced on Monday that over 4 000 SAA jobs would possibly be affected as they begin a “consultation” process with employees. 

BRPs, Siciwe Dongwana and Les Matuson, said the notice is “advising its employees of the intention to begin imminent consultations in terms of Section 189 of the Labour Relations Act 66 of 1995.” 

Notice issued to the following unions 

The retrenchment notice was served to the following unions in SAA for employees and management: 

• South African Airways Pilots Association (Saapa);
• National Transport Movement (NTM);
• NTM Management Forum; 
• South African Cabin Crew Association (Sacca); 
• South African Transport and Allied Workers Unions (Satawu);
• Aviation Union of South Africa (Ausa); and
• National Union of Metalworkers of South Africa (Numsa). 

“The BRPs have been engaging with the unions, most recently over the past weekend, in relation to this process, and the intention to begin the consultation process,” they said.

Reduction in SAA headcount 

The BRPs did not shy away, saying that the proposed restructuring will facilitate a reduction in jobs, however, nobody expected the reduction to be made up of over R4 000 employees. 

As outlined, the process is only applicable to employees based in South Africa. For any of those outside the country, the matter will be handled in terms of the labour laws of that particular country. 

Here’s how employees will be selected 

Employees will be selected for positions within the new structure based on service length, skills, qualifications, and experience in respect of the job categories indicated, taking into account employment equity objectives. 

The BRPs contemplate that 4 708 employees will be affected by the process. The number of jobs that remain or continue to exist will be based on the consultation process outlined by the BRPs. 

“Our intention has always been to preserve as many jobs as possible through this process while still focusing on having a sustainable airline and platform for growth,” they added.

SAA placed under business rescue   

The government placed SAA on voluntary business rescue in December 2019 after the airline experienced losses totalling R26 billion over the past six years.

The potential job cuts are part of the business rescue process and follow the cancellation of several domestic and international routes announced in February.

“We must emphasise that no final decisions have yet been taken, nor will any final decisions be taken until we have exhausted consultation and hopefully reached an agreement,” it added. 

SAA creditors granted BRPs an extension until 31 March to publish their business rescue plan.