Economy

SAA unions, creditors urged to become 'co-creators of new national airline'

Date: Jul 13, 2020

Ahead of a key vote on the future of embattled national carrier, South African Airlines (SAA), minister Pravin Gordhan's Department of Public Enterprises (DPE) has called on unions and creditors to become the "co-creators of a new national airline".

Some seven months after it entered business rescue, a vote on the airline's future is at long last expected to take place on Tuesday.

Stakeholders will vote to accept or reject the amended business rescue plan drawn by business rescue practitioners, Siviwe Dongwana and Les Matuson, which includes the retention of only 1000 jobs, as well as offers of voluntary severeness packages to staff to reduce the airline's wage bill.

A vote in favour of the plan by 75% of the voting interests is required to carry the vote. "Should creditors vote not to support the business rescue plan, SAA would face liquidation," said the DPE, which would mean far lower severance package payouts to staff.

--News24--

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