Huge SAA flight cancellations

If the 13th cheque is not contractual, the directors are breaching their fiduciary responsibilities. Even if so, it should be negotiated at this time.

Is harsh but many folks have been in the same situation and they need to face reality.
 
Kosmik said:
If the 13th cheque is not contractual, the directors are breaching their fiduciary responsibilities. Even if so, it should be negotiated at this time.

Is harsh but many folks have been in the same situation and they need to face reality.
Click to expand...
I doubt they'd waive a 13th cheque in Dec. Most people won't.
 
Thing is, many times, the "13th cheque" is simply part of your normal cost to company or package that is set aside every month and then paid to you on your elected pay month, e.g. December. It is not in any way a bonus. It is for undisciplined, stupid people who can't manage their money monthly. (ie: most people).

That said, how is it that they can pay 50% and then a few days later, a further 50%? I'm assuming it is a cash flow issue and they literally have to wait a few days for future ticket sales to refill the bank accounts enough.
 
Gaz{M} said:
Thing is, many times, the "13th cheque" is simply part of your normal cost to company or package that is set aside every month and then paid to you on your elected pay month, e.g. December.
Click to expand...
Current work have the same scheme. You can set aside a part of your salary, which gets paid out in December, as a 13th cheque.
 
Gaz{M} said:
December. It is not in any way a bonus. It is for undisciplined, stupid people who can't manage their money monthly. (ie: most people).
Click to expand...

Most people I know who get a 13th cheque fall into one of two groups: They blow it over the holiday or it's what get them out of the financial hole they spent themselves into during the yar. Wash, rinse, repeat.

I was struck by the news early on after the strike started, that employees getting back to work after only a few days "as lack of earnings start to bite" - well before payday. So employees in such bad financial shape that even a few days without income is enough to break them when there's an 8% raise on the cards?

This really
 
koffiejunkie said:
Most people I know who get a 13th cheque fall into one of two groups: They blow it over the holiday or it's what get them out of the financial hole they spent themselves into during the yar. Wash, rinse, repeat.

I was struck by the news early on after the strike started, that employees getting back to work after only a few days "as lack of earnings start to bite" - well before payday. So employees in such bad financial shape that even a few days without income is enough to break them when there's an 8% raise on the cards?

This really
Click to expand...

Most South African's don't have a cent in their bank account by the middle of the month. They live on credit. Even "rich people" you see living in golf estates driving brand new German cars are literally broke. I know this because the School principal at my private school tells me the people with the nicest cars are the ones who never pay school fees on time and always ask for "extensions" to pay 3 or more months late.
 
Gaz{M} said:
Most South African's don't have a cent in their bank account by the middle of the month. They live on credit.
Click to expand...

So true, and you can see it first hand by how busy shops are on payday versus how chilled they are in the middle of the month.

Gaz{M} said:
Even "rich people" you see living in golf estates driving brand new German cars are literally broke. I know this because the School principal at my private school tells me the people with the nicest cars are the ones who never pay school fees on time and always ask for "extensions" to pay 3 or more months late.
Click to expand...
People with the nicest cars usually pay a bucketload on them per month and have balloon payments at the end,...

I used to work with a few people who earned less than me and were more than happy to trade-in for a new car every 3-4 years with the knowledge that their monthly car payments will be a permanent feature of their life until they retire...

The idea of living on credit, month to month to pay off last months credit cards scares the s**t out me, but I guess I am in the minority.
 
www.businesslive.co.za

Cabinet ministers face off over whether SAA lives or dies

The urgent meetings, which involve Tito Mboweni and Pravin Gordhan, must consider whether or not to extend a guarantee
www.businesslive.co.za www.businesslive.co.za

Behind a paywall so will quote the relevant parts:

SAA is on the brink after a day of intense interaction between the Treasury and the department of public enterprises on whether to give it one last lifeline or send it into business rescue or liquidation.

The interactions must be finalised in the coming days as the airline needs at least R2bn immediately to pay salaries and suppliers or it will have to cease trading. Commercial banks are willing to advance the money but only on receipt of a full loan guarantee from the Treasury.

An urgent cabinet subcommittee involving finance minister Tito Mboweni and public enterprises minister Pravin Gordhan, must take a decision on Thursday on the guarantee, effectively deciding whether the airline continues to trade as it is; is dramatically restructured through business rescue; or is liquidated and assets sold off to cover liabilities.

Gordhan, who opposes both the latter options and is still seeking to secure a funding arrangement, concedes, however, “that SAA cannot continue as is”.

“The strike at SAA with consequential cancellation of bookings has resulted in a sudden deterioration of SAA’s financial position. Accordingly, the department of public enterprises is working together with SAA to urgently formulate immediate actions that will be required to provide support to enable SAA to carry on its business,” a statement released by the department of public enterprises said on Wednesday.

While an application for business rescue has already been brought by trade union Solidarity, there is some doubt about whether it will succeed as business rescue requires a reasonable prospect of success. In SAA's case this would mean the availability of funds for it to trade its way out of distress.

Liquidation, on the other hand, could be catastrophic. SAA is insolvent, with liabilities exceeding assets by R17.8bn in the 2017, the last year in which the company published annual financial statements.
Click to expand...
 
Gaz{M} said:
Most South African's don't have a cent in their bank account by the middle of the month. They live on credit. Even "rich people" you see living in golf estates driving brand new German cars are literally broke. I know this because the School principal at my private school tells me the people with the nicest cars are the ones who never pay school fees on time and always ask for "extensions" to pay 3 or more months late.
Click to expand...

I don't have a cent in my bank account long before the middle of the month but that is because I earn zero with it there, while I earn interest with it in savings accounts and then using my credit card for expenses which is then paid off come pay day.
 
Flight Centre stops selling SAA plane tickets with immediate effect

As of midday on Thursday, leading travel retailer Flight Centre stopped selling packages or airline tickets on SAA.

It is another blow to the national carrier, which only just came back online after a weeklong strike.

Flight Centre Travel Group MD for the Middle East and Africa Andrew Stark told TimesLIVE that the decision came because of the risks associated with SAA at the moment.

He said the “final straw which broke the camel's back” was news on Wednesday that the company's preferred travel insurer Travel Insurance Consultant (TIC) decided that it would not cover passengers using SAA should flights be grounded.
Click to expand...

Please let this be the beginning of the end for SAA.
 
Chris_the_Brit said:
www.businesslive.co.za

Cabinet ministers face off over whether SAA lives or dies

The urgent meetings, which involve Tito Mboweni and Pravin Gordhan, must consider whether or not to extend a guarantee
www.businesslive.co.za www.businesslive.co.za

Behind a paywall so will quote the relevant parts:
Click to expand...

The strike at SAA with consequential cancellation of bookings has resulted in a sudden deterioration of SAA’s financial position.
Click to expand...

Well done to all the useless employees and the unions at SAA for pushing the walking dead company into the grave.

Liquidation, on the other hand, could be catastrophic. SAA is insolvent, with liabilities exceeding assets by R17.8bn in the 2017, the last year in which the company published annual financial statements.
Click to expand...

https://www.thesouthafrican.com/news/saa-bailout-how-much-last-20-years/

The fact-finders at Africa Check conclude that R29 billion had been spent on SAA from 1999 – 2017 .

That’s an additional R10.3 billion that’s made it’s way into their bottomless pit of savings in less than a year-and-a-half. Add that to the total calculated in 2017, and it works out to be a lump sum of R39.3 billion.
Click to expand...

So even if they close SAA tomorrow us taxpayers will still have to pay at least R21bn while the rest of their debt will have to be written off.
 
I think there will be some upset employees next week when they dont receive their salaries
 
slow_clap.gif

Well done to the unions and their members. A most excellent job, properly executed without consideration to the consequences.

Oh, consequences is something you don't like? Well, there you go, it is what it is.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X