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Public enterprises tells SAA unions there is no money for better severance pay


The Department of Public Enterprises says it will not be able to entertain further demands from labour unions regarding the retrenchment process at South African Airways which forms part of a proposed business rescue plan for the national carrier.

The department says it addressed unions' concerns over the number of people to be retrenched during a meeting last Friday with NUMSA, the South African Cabin Crew Association and the South African Airways Pilots Association.

The concerns that were addressed centred on the number of people to be retrenched and the value per employee of the proposed voluntary severance package.

The department emphasised that the 1 000 people start-up number and the R2.2 billion budget for the voluntary severance package were arrived at with the view to ensuring restructuring results in the formation of a viable, sustainable and competitive airline.

The plan envisions retaining only 1 000 of the current staff complement of close on 5 000 employees.

In a statement issued on Tuesday, the Department of Public Enterprises stressed that it was not able to accede to any further demands from sections of union leadership for additional benefits given the financial constraints on government.