The National Union of Metalworkers of South Africa (Numsa) has said it is deeply concerned for the troubled airline company, Comair, and its workers.
This comes after Numsa’s meeting with the management team of Comair, including the CEO, Glenn Orsmond, and the company’s Business Rescue Practitioner, Richard Ferguson yesterday.
Numsa said that Ferguson confirmed to all those at the meeting that Comair’s financial situation is dire.
“He said the airline has only two options: to find an investor in the shortest time possible, or else it will be wound down. Even more worrying is that Ferguson was unable to guarantee whether employees will get their salaries for the month of June and this includes the payment of medical aid and other benefits,” Numsa said in a statement on Wednesday.
Numsa said it is deeply concerned about the state of the company and in particular, what this means for workers and their families.
“At least 1200 jobs are on the line if this airline collapses. We maintain that this situation is caused by mismanagement at the highest level. Both Glenn Orsmond and Ferguson must take full responsibility for failing to turn the airline around. The airline has been under business rescue for possibly the longest time in South African history but Richard Ferguson failed to implement a strategy to keep the business viable,” Numsa further stated.
Numsa said it would be making an application to the Department of Employment and Labour for employees to be placed on the Training Lay-off Scheme.
“That way whilst the airline is not operating, workers can at least earn some kind of salary while training. At the same time, every effort must be made to find an investor for the airline in order to prevent liquidation,” Numsa further said.
In a brief statement on social media platforms last week, Comair, which operates British Airways and kulula.com, advised the public that its flights had been voluntarily suspended from June 1 pending securing funding to resume operations.
The airline’s management along with the BRP told the unions – including Numsa, Solidarity and the Pilots Association of South Africa – that it would not divulge the amount necessary to keep Comair afloat under non-disclosure agreements, but that it was urgent that the airline get an investor.
Aviation analyst Puthego Mojapili last week told Business Report: “The chances of (Comair) surviving this are very slim. They might not take to the skies again.”
Meanwhile, it was reported that other airlines in the country are battling to make up for the 40% loss in domestic seat capacity.
BUSINESS REPORT