SAA: Government and unions to pursue 'new financially viable and competitive airline'

South Africa's Department of Public Enterprises announced (21-Apr-2020) a team of government leaders and senior officials held a meeting with union representatives on 21-Apr-2020 regarding the future of South African Airways (SAA). The participants reached consensus on the following:

• Unions will work with the government "to ensure that a new financially viable and competitive airline emerges from the business rescue process";
• A consultative forum will be established "to advance dialogue and consultation on the process ahead";
• There will be "a sharing of ideas" on ensuring the wellbeing of employees;
• There must be no dependence on the government fiscus, as the government is not in a position to provide more capital to SAA;
• Unions agreed that "some jobs will be lost" and remaining employees "will need to sacrifice some of the unaffordable arrangements that had worsened the airline's financial position";
• Social plans will be developed to cushion the impact on affected employees;
• All parties must commit to a "creative solution" for the airline, "to avoid a scenario where the business rescue is deemed to have failed";
• Unions were invited to submit proposals on the restructuring of the airline and the future of jobs. [more - original PR]