Strike led to 'sudden deterioration' of SAA's financial position | IOL News

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Strike led to 'sudden deterioration' of SAA's financial position | IOL News
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The strike at SAA resulted in a 'sudden deterioration' of the national carriers' financial position, the department of public enterprises has said.

Durban - The strike and subsequent cancellation of bookings at South African Airways resulted in a "sudden deterioration" of the national carriers' financial position, the department of public enterprises has said.

SAA had to cancel most of its flights due to the strike, which was called by the South African Cabin Crew Association and the National Union of Metalworkers of South Africa on November 15 due to the airline announcing it would need to retrench just under 1000 staff. The strike ended on November 23 with wages increased by 5.9%. The unions had initially sought an eight percent increase.

Under the direction of public enterprises minister Pravin Gordhan, focus would be on the short-term stabilisation of SAA, which would include support from all stakeholders. The department added that other areas of focus would be addressing governance and leadership issues, including appointing an "effective" management team.

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'Strike has hit the finances of SAA'The strike that recently saw South African Airways' workers down tools for a week has negatively impacted the balance sheet of the cash-strapped state-owned entity. This is according to the department of public enterprises, which said the SAA cannot continue 'as is'. 'The strike at South African Airways SOC Limited (SAA) with consequential cancellation of bookings has resulted in a sudden deterioration of SAA’s financial position,' the department said in media statement released on Wednesday...
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