12 °c
London
Tuesday, August 16, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

South African Airways begins retrenchment consultation process

Staff by Staff
March 11, 2020
in Africa, Aviation, Economy, Finance, Labour, South Africa, Transport, Travel
Reading Time: 3 mins read
835 63
0
Reviewing the challenges of 2020 for the African aviation sector
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

The business rescue practitioners (BRPs) of South African Airways (SAA) have issued a notice advising employees of the intention to begin retrenchment consultations.

In a statement, the BRPs said they have been engaging with SAA unions in relation to the process and the intention to begin the consultation process.

“Our intention has always been to preserve as many jobs as possible through this process, while still focusing on having a sustainable airline and platform for growth,” said the business rescue practitioners on Monday.

The BRPs said the process involves the employees of SAA and not those of its subsidiaries, namely Mango, SAA Technical and Airchefs.

The BRPs contemplate that all 4,708 employees will be affected and the number of jobs that will exist in the restructured organisation will be the subject of the consultation process.

“Regrettably, this restructuring exercise, if implemented, may lead to positions being declared redundant across various job categories and in significant numbers. This may, in turn, result in the dismissal of employees employed by the company, for operational reasons,” said the BRPs.

SAA’s financial and business challenges

SAA has experienced numerous financial and business challenges, which resulted in losses of some R26 billion over six years.

“Load factors on the airline have declined steadily from August 2019 to a low of 71% in January 2020. Forward sales have also declined significantly, with all markets showing negative or minimal growth, within a very competitive market,” said the BRPs.

The recent marked decline in travel due to the new Coronavirus (COVID-19) is expected to further exacerbate matters.

Events negatively impacting South African Airways

The following events that have occurred in the past few months have all had a significantly negative impact on SAA’s revenue, including:

  • the lack of funding;
  • grounding of SAA aircraft by the SACAA in October 2019;
  • the eight-day strike in November 2019;
  • followed by SAA being placed under business rescue in December 2019;
  • the subsequent withdrawal of travel supplier insolvency cover, which was reinstated in February 2020.

The overall result has seen a decline of R1.3 billion in revenue, with a cost base that remains more or less flat.

Urgent changes to SAA to avoid liquidation

Said the BRPs: “The changes required at SAA are therefore both structural and economic. They are urgent if liquidation is to ultimately be avoided, in which event all employees will lose their jobs.”

“To avoid this scenario and to build a commercially viable business, the BRPs propose a fundamental restructuring of its business, such that it can best meet market demands and operate as a sustainable African airline.”

“The current structure negatively affects the efficient operation of the business and, in turn, its profitability and sustainability.”

“To achieve these goals, the strategy is to reduce loss making services and increase efficiencies, which will see a reduction in the aircraft fleet, as well as services and route flow.”

SAA has elected to apply for the appointment of a CCMA facilitator to guide and assist the parties during the consultation process.

The initial consultation will be held on 12 March 2020.

“The 60-day consultation process, in terms of section 189A of the Labour Relations Act, will end on 8 May 2020 and accordingly, the consultative process will be finalised by 8 May 2020.”

“An expedited consultation process, ending by no later than 8 April 2020, has been proposed in an effort to avoid liquidation,” said the BRPs.

Source: SA People News

Related

Tags: AirchefsBRPBusiness Rescue PractitionersCCMAcoronavirusCovid-19Labour Relations ActMangoSAASAA TechnicalSACAASouth Africasouth african airwaysюжная-африкаجنوب-أفريقيا南アフリカ南非
ScanSendShare359Tweet225Share63Pin81Send
Staff

Staff

Related Posts

Expat: Mozambique improves Oil & Gas immigration regime
Policy

Mozambique reviews Visa regime as part of its Economic Stimulus Package

by Elizabeth Khumalo
August 16, 2022
FDI

Foreign investment – plus or minus to Tanzania fishing sector?

by The Exchange
August 16, 2022
Agriculture

Nigeria approves US$24B for smart modular irrigation

by Farmers Review Africa
August 16, 2022
Trade

Ethiopia’s first free trade zone inaugurated

by FurtherAfrica
August 16, 2022
Banking

AfDB’s “Technologies for African Agricultural Transformation” wins award

by FurtherAfrica
August 16, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Expat: Mozambique improves Oil & Gas immigration regime
Policy

Mozambique reviews Visa regime as part of its Economic Stimulus Package

by Elizabeth Khumalo
August 16, 2022
0

Following last week’s release of a 20 measures stimulus package, Mozambique announced details about one of the first measures to...

Read more

Foreign investment – plus or minus to Tanzania fishing sector?

August 16, 2022

Nigeria approves US$24B for smart modular irrigation

August 16, 2022

Ethiopia’s first free trade zone inaugurated

August 16, 2022

AfDB’s “Technologies for African Agricultural Transformation” wins award

August 16, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 100,550 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?