Trade unions challenge SAA in court over retrenchment process

On Thursday 13 February, the Labour Court heard an urgent court application by the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca).

This follows after business rescue practitioners at SAA began the process of retrenching workers. Advocate Thembeka Ngcukaithobi argued on behalf of Numsa and Sacca.

“SAA has already made a calculation that jobs will be lost which is why they wanted to implement a speedy retrenchment process.”

Advocate Thembeka Ngcukaithobi

Reduction in SAA staff

Sacca have made submissions claiming that the business rescue practitioners at SAA are not following correct procedures with respect to the retrenchment of staff.

SAA’s business rescue practitioners last week announced that they would be reducing the number of routes operated by SAA and that this would necessitate a reduction in staff.

However, Numsa and Sacca are arguing that the business rescue practitioners are acting outside the law by failing to consult with employees in trying to find alternatives which could prevent job losses.

The trade unions are asking that the court rule that the business practitioners announcements of forthcoming retrenchments be declared invalid.

In response, the business rescue practitioners are arguing that they are protected from being taken to court, without permission from the high court, under the companies act as they are currently in business rescue.

Section 189 disputes

In addition to that, the business rescue practitioners feel that the unions have acted prematurely claiming that they have not yet decided on which jobs and people may be affected by retrenchments.

As such, they were under no obligation to comply with section 189 yet. According to their papers filed in opposition of the unions’ application:

“When that plan is ready, and there is a contemplation of which jobs and people may be affected, a section 189 process will be duly instituted.”

In response, the unions are arguing that by closing the routes they have as many as 1 000 job losses are inevitable and as such section 189 processes should have been followed.

“It is clear that SAA is contemplating huge retrenchments with at least 1 000 retrenchments. We are asking them to comply with the law. We have been told they are going to fire us. In these circumstances, they must do what section 189 says.”

Democratic Alliance speaks out

Earlier this week, DA Member of the Standing Committee on Public Accounts Alf Lees issued a communication claiming that the R3.5 billion pumped into SAA in January will run out in a matter of weeks.

“The R3.5 billion loan SAA reportedly secured from the Development Bank of Southern Africa will supposedly only last the airline until mid-March. After which, the airline will have no money to continue its operations. The government will then either cut the defunct SOE loose, or give it another bailout.”

Lees suggested that the best option would be to to cut the defunct SEO loose instead of giving it another bailout, but dryly remarked that the ANC would “much rather senselessly throw public funds at a bankrupt SOE which clearly does not contribute anything to South Africa’s fiscus”.