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  • South Africa's Labour Court on Friday ruled in favour of unions opposing the retrenchment of South African Airways workers by its business administrators, the unions said. South African Airways (SAA) is set to be replaced by a new airline after years of mismanagement and debt. The cash-strapped airline was placed under a state-approved rescue plan in December in a bid to save it from total collapse. But those rescue efforts have been marred by the coronavirus outbreak, prompting a government decision to create a "new restructured airline" that could bleed hundreds jobs. South Africa's National Union of Metalworkers (NUMSA) and the South African Cabin Crew Association (SACCA) successfully opposed the retrenchment. "(NUMSA and SACCA) have succeeded in their court application to have the retrenchment... at SAA declared unfair," the unions said in a statement after the Labour Court ruling on Friday. In its judgement, the court directed SAA's Business Rescue Practitioners to "withdraw their notices". "This basically means that we have been vindicated," the statement said. "The court if re-affirming that the Business Rescue Practitioners cannot retrench workers without a business rescue plan." Public Enterprises Minister Pravin Gordhan warned earlier this week that not all SAA employees would be transferred to the new airline. "What we need to do... is put together a social plan which will have various dimensions that will, in essence, look after the welfare of labour but also change the way in which business is done," said Gordhan during a virtual briefing on Wednesday. SAA employs more than 5,000 workers and is Africa's second-largest airline after Ethiopian Airlines. Like most South African state-owned enterprises (SOEs), it has failed to make a profit for more than a decade and survives on government bailouts. sch/jh
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  • S.African unions win bid to halt SAA retrenchment
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