Huge SAA flight cancellations

The government blinked:

The details of the deal were not immediately announced. In a statement, SAA later confirmed that the parties agreed to an increase of 5.9% on total cost of employment retrospective to 1 April 2019, which will be paid in the February 2020 payroll. This would be subject to availability of funding, SAA said.


The back payment for the first six months would be paid in March 2020, with the remaining four months paid in April 2020.

The salary increase and back pay would be subject to funds being obtained by SAA for such purposes and being available during February 2020, March 2020 and April 2020, "as the case may be", the national carrier added.

Additionally, SAA said, the Section 189a retrenchment process would be deferred to January 2020, but the deferment would only apply to the bargaining unit. The process would continue for SAA management, with the next consultation scheduled for November 25.
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Chris_the_Brit said:
The government blinked:
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They got something
Additionally, SAA said, the Section 189a retrenchment process would be deferred to January 2020, but the deferment would only apply to the bargaining unit. The process would continue for SAA management, with the next consultation scheduled for November 25.
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Actually I'm not entirely sure reading that, that the government blinked...

The "if funds are available" part is more than likely going to be key.

Yes the government played softcock to a degree, but there is a possibility the unions have been duped on this one.
 
The wage deal shouldn't derail solidarity's application for business rescue, so that option is still in the pipeline and going unless they withdraw it.
 
The_Librarian said:
but do they (the unions) understand that? *snigger*

We'll have to wait and see. February 2020 is just round the corner.

I think Dec 2019 will be a very dismal affair for SAA staff...
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Very much so, and the Section 189 stuff is only deferred to January, so 2 months away really...

There is lots not to like about this "deal" but there are also a few things that indicate maybe government has been vaguely smart about it, time will tell (and the hopes aren't there anymore that they will do the right thing)
 
ToxicBunny said:
I would also hazard a guess that the vast majority of the bloat is at the management level anyway.
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They also were forced to agree to the 5.9% I think thats the first time a union has ever agreed to that level from what I've heard.

Still, SAA has to find money somewhere and has yet to, regardless of whatever agreement is struck.
 
Kosmik said:
They also were forced to agree to the 5.9% I think thats the first time a union has ever agreed to that level from what I've heard.

Still, SAA has to find money somewhere and has yet to, regardless of whatever agreement is struck.
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100%. I don't think I've ever seen a Union capitulate to the originally offered figure. 5.9% is still too high in my opinion, but its way more reasonable than 8%.
 
To summarize, instead of retrenchments because they are insolvent, there will be salary increases now or am I missing something?
 
www.sowetanlive.co.za

SAA gives a break down of a wage deal reached with unions

SAA on Friday confirmed that a wage-related strike was over.
www.sowetanlive.co.za www.sowetanlive.co.za

The workers had, among, other demands, wanted a wage increment of 8%. The airline was offering 5.9%. The trade unions have since agreed to 5.9%.

After two days of discussions under the auspices of the CCMA, SAA listed these as the points of their agreement with the unions:

  • The parties agree to an increase of 5.9% on total cost of employment retrospective to April 1 2019, which will be paid in the February 2020 payroll, subject to availability of funding;
  • The back payment for the first six months (April to September 2019) will be paid in the March 2020 payroll;
  • The remaining four months (October 2019 to January 2020) back pay will be paid in the April 2020 payroll;
  • The entitlement to the salary increase and back pay as referred to in point 1, 2 and 3 above is subject to funds being obtained by SAA for such purposes and being available during February 2020, March 2020 and April 2020 as the case may be;
  • The section 189A Labour Relations Act (LRA) process, for which notice was served on November 11 2019 to all recognised trade unions, will be deferred effective from the date of signature of this agreement to January 31 2020. The deferment will only apply to this bargaining unit (non-management);
  • The section 189A LRA process, which commenced on Wednesday, November 20 2019, will however continue for SAA management, with the next consultation meeting scheduled for Monday, November 25 2019;
  • SAA and the recognised trade unions will apply to the relevant authorities (department of employment & labour and the CCMA) for SAA to participate in the Training Layoff Scheme in terms of the rules of the scheme;
  • The parties further agree to establish a task team. The main objective of the task team will be to identify and consider cost saving initiatives, inter alia, insourcing and contracts. Should the task team be able to realise savings, a percentage of the after-tax savings may be ring-fenced and paid to employees in the bargaining unit. The task team will discuss and agree on a formula for such payment; and
  • The Numsa and Sacca coalition agreed to, with immediate effect, call off the industrial action, and instruct their members currently on strike to return to work latest by November 23 2019.
 
So SAA made agreements with the unions which depends on them having money available to fulfill them. Government (Pravin and Mthembu) said no money is available and no more bailouts.

So what now? Is SAA suddenly going to become profitable in the next 3 months?
 
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