There is 'absolutely zero' in govt's kitty for bailouts, including at SAA - Mthembu

[Jopie Fourie]

Government does not have money to bail out state-owned enterprises like national carrier South African Airways, but that does not mean workers are not allowed to go on strike for higher wages, Minister in the Presidency Jackson Mthembu has said.

The minister on Thursday briefed media on the outcomes of Cabinet's meeting this week. Cabinet has appealed to all parties involved in the industrial action to work together in finding solutions that are in the best interests of the country, Mthembu said.

"Whilst the Constitution of the Republic of South Africa of 1996 provides for the right of workers to withhold their labour, we do however caution against irresponsible public utterances and threats to the safety of passengers of their families during this time," he said.

Mthembu was referring to remarks by trade union National Unions of Metalworkers of South Africa spokesperson Phakamile Hlubi-Majola, who at a media briefing on Sunday said that SAA flights posed a safety risk. SAA has hit back at the claim and assured the public that its flights are safe. It plans to take legal action over the utterances, it added.

There is 'absolutely zero' in govt's kitty for bailouts, including at SAA - Mthembu | Fin24

Minister in the Presidency Jackson Mthembu says government cannot afford to bail out struggling SOEs like SAA, but that does not prevent workers from going on strike.

www.fin24.com

 

[Jopie Fourie]

So, it seems the South African Government has gone bankrupt and belly-up. Can't even pay all those 'Government Guarantees' they have been handing out over the years... typical..

 

[ForceFate]

So, it seems the South African Government has gone bankrupt and belly-up. Can't even pay all those 'Government Guarantees' they have been handing out over the years... typical..

I think they're playing hardball. Since when do we believe what the government tells us? I think they want to use this opportunity to do what they want. Nowadays, trade unions largely rely on intimidation (not all of them but it happens) to force their way through wage negotiations. SAA striking workers appear fairly well behaved. Additionally, there are pockets of striking workers that have contemplated returning to work.

 

[Techne]

Tax is cultural appropriation. Get rid of this Colonialist idea that oppressed the people.

 

[ForceFate]

Tax is cultural appropriation. Get rid of this Colonialist idea that oppressed the people.

Tax has existed in different forms, and was payable to the head honchos in grain, meat, livestock, etc. I doubt there's any nation in the world that could survive being taxed by those who thought they were entitled to it.

 

[NarrowBandFtw]

Tax is cultural appropriation. Get rid of this Colonialist idea that oppressed the people.

Tax is armed robbery. Only problem is the victims never lay any charges and even vote for the robbery to continue, and the courts will never stand up to the robbers.

 

[Gaz{M}]

Government has only one card left in the game. Don't give SAA any more money. It's the only way to beat the unions. They can literally hold it as a gun over the Union's heads. Nobody can force a "shareholder" to supply additional loans/capital to a failed company.

 

[ForceFate]

Tax is armed robbery. Only problem is the victims never lay any charges and even vote for the robbery to continue, and the courts will never stand up to the robbers.

What are alternatives to tax?

 

[ToxicBunny]

Government has only one card left in the game. Don't give SAA any more money. It's the only way to beat the unions. They can literally hold it as a gun over the Union's heads. Nobody can force a "shareholder" to supply additional loans/capital to a failed company.

I don't even think its a card the government has left really... they have no choice anymore, there is no money in the kitty for them to bailout SAA. The Unions are calling their bluff but I don't think they are bluffing.

 

[ForceFate]

Government has only one card left in the game. Don't give SAA any more money. It's the only way to beat the unions. They can literally hold it as a gun over the Union's heads. Nobody can force a "shareholder" to supply additional loans/capital to a failed company.

The way I see it...they will give SAA money under certain conditions.

 

[ArtyLoop]

So, it seems the South African Government has gone bankrupt and belly-up. Can't even pay all those 'Government Guarantees' they have been handing out over the years... typical..

Hefty tax increases incoming in 3...2...1

 

[Gaz{M}]

The way I see it...they will give SAA money under certain conditions.

Unforunately, I tend to agree with you. Any minute now, we will read news about how Gov has agreed to a R500m or so short loan to pay November/December salaries on condition that "blah blah blah".

 

[BBSA]

What are alternatives to tax?

User pay.

 

[ForceFate]

User pay.

Erm...you know that's not practical. You mean the entire infrastructure must be privatised, including the judiciary?

 

[VooDooC]

Erm...you know that's not practical. You mean the entire infrastructure must be privatised, including the judiciary?

Sounds like fun, almost like a dystopian sci-fi movie where everything is run by private corporations.

 

[Vrotappel]

The ANC has stolen all the money. Live with it.

 

[BBSA]

Erm...you know that's not practical. You mean the entire infrastructure must be privatised, including the judiciary?

Who said anything about privatisation?

 

[hellfire]

The way I see it...they will give SAA money under certain conditions.

I don't think so.
They will pay the debt they've guaranteed, but they won't bail out SAA in terms of operating losses

 

[My_King]

Tax is cultural appropriation. Get rid of this Colonialist idea that oppressed the people.

Funny thing that, that is suddenly acceptable

 

[Jet-Fighter7700]

The ANC has brought Houses and BMW's with the money. Live with it.

FTFY