25-Nov-2019 8:10 AM
South African Airways reaches agreement with unions to end strike
South African Airways (SAA) reached (22-Nov-2019) an agreement with the National Union of Metalworkers of South Africa and the South African Airways Cabin Crew Association on 21-Nov-2019 to end industrial action, which commenced on 15-Nov-2019. The unions called off the industrial action, effective immediately, and instructed their members to return to work by 23-Nov-2019. Details of the agreement include:
- A 5.9% increase in the total cost of employment, effective 01-Apr-2019. The back payment for Apr-2019 to Sep-2019 will be paid Mar-2020 and the back payment for Oct-2019 to Jan-2020 will be paid in Apr-2020;
- The wage increase and back pay remains subject to SAA obtaining necessary funds;
- The notice of restructuring served to unions on 11-Nov-2019 was deferred to 31-Jan-2020 for non management staff. The process will continue to SAA management;
- SAA and the unions will apply to the relevant government authorities to participate in the Training Layoff Scheme;
- The parties will establish a task team to identify and consider cost saving initiatives. If the team is able to realise savings, a portion of the after tax savings may be allocated to employees. [more - original PR]