Court may give ‘SAA retrenchments’ judgment on Friday

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Court may give ‘SAA retrenchments’ judgment on Friday
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Unions are opposing retrenchments they say are a ‘forgone conclusion’, while the business rescue practitioners say they don't need consent

On Thursday, the business rescue practitioners of loss-making SAA argued that the labour court has no jurisdiction to hear an application opposing the looming retrenchments at the state-owned airline.

A business rescue process is aimed at rehabilitating a financially distressed company by restructuring its affairs including debt, among other things. The decision has been criticised by the unions, while President Cyril Ramaphosa, Eastern Cape premier Oscar Mabuyane and his KwaZulu-Natal counterpart Sihle Zikalala have also expressed their dissatisfaction with the decision. The practitioners have insisted that the decision to cut flights was taken in the best interests of SAA.

They also want SAA not to go against an agreement reached during wage negotiations in 2019, in which the company would make use of the government training layoff scheme.

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BDliveSA /  🏆 12. in ZA

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