Striking SAA employees have accepted the airline's offer of a 5.9% wage increase, ending a strike by members of the metalworkers union Numsa and the South African Cabin Crew Association.
However, the parties have agreed on a compromise to fund the 2.1% that will make up the deficit of the unions demand for an 8% salary increase for its members.
A task team will now be established to look at ways to fund this by identifying cost-savings at the airline.
"The work of the task team will be to realise savings that will fund the increase to the bargaining unit by identifying contracts that are onerous to the finances of SAA and ensuring that those contracts are either renegotiated, cancelled or in-sourced, whichever is the most affordable for the airline," said Numsa spokesperson, Phakamile Hlubi-Majola.
Addressing members on Friday she said everyone knows that SAA has no money and is dependent on government, the shareholder, to fund it.
Hlubi-Majola said as of this morning there "wasn't even money for salaries for November", but she said because of the commitment of the employees the money is there, "government has committed to that".
In welcoming the end to the strike, the trade union federation, Fedusa, said that 'the fact remains that although the 5.9% wage increase has been backdated to 1 April 2019, it will only be paid out in February 2020 because SAA does not have that kind of money at present; or perhaps more accurately, if it can find the money by then."
Fedusa's acting president, Martle Keyter, said this tough wage settlement validates the union federation's call made earlier this week on government and especially Public Enterprises Minister Pravin Gordhan to take the unpopular but vital step of bringing in a strategic partner that will help to recapitalise SAA.
