SAA has tabled an improved wage offer to trade unions.
SAA has tabled an improved wage offer to trade unions.

DURBAN - South African Airways has made progress with the current wage negotiations dispute with labour unions represented at its maintenance subsidiary SAA technical (SAAT).

On the 29th  of September 2017, SAAT was served with a notice of intention to embark on industrial action by SATAWU, which is one of the unions represented at SAAT.

Although SAA has been served with the strike notice but the SAA flight schedule has not been affected.

To alleviate any possible strike action, SAA began to re-evaluate and update their contingency measures to ensure business continuity and to reduce the impact of any strike action on SAA operations. 

Since the strike notice was serve SAA management obtained a revised mandate from the Board if Directors and met with three labour unions including SATAWU, NUMSA and UASA to present a revised offer to the unions this week. 

Management is committed to working with the unions to find solutions that fit the demands of the employees, protect the business and to avoid industrial action. 

The company said that they appreciate the demand for salary increases, it must be done keeping in mind the current financial constraints that the company is experiencing. Therefore the demands must be weighed against affordability and sustainability principles in wage negotiations. 

SAA has been experiencing financial issues with government trying to do as much as they as they can to bail the airline company out if their current situation. 

Just recently the airline received a bailout from government with the funds coming form the National Revenue Fund. The bailout that they received would be used to pay back that they owed to Citibank. 

SAA owed R7 billion in debt and was ordered to pay back R1'9 billion to Citibank by the end of September. 

It has been reported that SAA would be cutting down on local and international flights to try to cut down operational costs by 20%. 

-BUSINESS REPORT ONLINE