SAA locks out pilots over business rescue deal disagreements

“Saapa will not be dictated to or bullied into submission. We are in the process of taking legal advice.” Picture: Rogan Ward/Reuters

“Saapa will not be dictated to or bullied into submission. We are in the process of taking legal advice.” Picture: Rogan Ward/Reuters

Published Dec 18, 2020

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Cape Town - SAA has locked out all its pilots affiliated to the South African Airways Pilots' Association (Saapa) with effect from midday today (Friday), after Saapa refused a deal from the airline’s business rescue partners.

This comes as the pilots’ union indicated they would seek legal advice on the lockout.

Backing the decision by the business rescue partners (BRPs), the Department of Public Enterprises (DPE) said: “As a shareholder on behalf of government, the department believes that one of the critical areas for a restructured SAA to get off the ground is to reduce the high cost structure caused by onerous contracts, high salaries and perks implemented under Saapa’s regulating agreement (RA).”

The DPE’s spokesperson Richard Mantu said: “This the best opportunity to agree on new employment conditions, which will result in the restructured, sustainable, agile and technology savvy airline.”

Mantu said: “Unfortunately, the RA that was signed in 1988 is a financial burden to the national airline, as its primary objective is to preserve undeserved privileges accrued through unjust laws that preserved aviation careers to a small minority in this country.”

“These privileges came with unaffordable benefits and a salary framework which should be terminated. We agree with the BRPs and their insistence on addressing the RA, as it cannot become part of the new SAA. The RA is unconstitutional and unlawful, and should be terminated,” said Mantu.

“The lockout strategy undertaken by SAA is commendable, considering the negative impact the RA has had on the airline's bottom line. It contributed to the lack of transformation at SAA due to the various clauses embedded in the agreement, which have curtailed the employment and promotion of black, coloured and Indian pilots to the high management structures of the airline,” said Mantu.

“Considering the fact that the government is seeking a strategic equity partner for SAA, the RA – in its current form – combined with succession clauses, will no doubt make SAA less attractive to potential partners.”

Responding to the decision, Saapa – through chairperson Grant Back – said: “Saapa is surprised, dismayed and disappointed with the inaccurate statements issued by the DPE and the BRPs regarding the impasse between the pilots and SAA, and the impending lock out of our members.”

“In fact, over the last few months, Saapa has already agreed to the majority of the demands made by the company. We have agreed to cancel the RA and replace it with a new collective agreement valid for three years. We have agreed to reduce salaries by up to 50%, which is far more than any other employee or management group at SAA.”

“In fact, Saapa has agreed to the vast majority of the outstanding items – except the unlawful proposal on the retrenchment of pilots based on race,” said Back.

“Saapa will not be dictated to or bullied into submission. We are in the process of taking legal advice,” said Back.

Asked whether there was another option for SAA, air transport economist Joachim Vermooten said there were two alternatives.

Vermooten, who is a former advisor to the DPE on SAA, said: “One would be the incorporation of a new company for the restart. Then everything would have to be negotiated from scratch.”

“Alternatively, the business rescue practitioner’s plan should just have made provision for the holding costs until restart,” said Vermooten.

Meanwhile, the International Air Transport Association (IATA) has put out a statement in which it said: “IATA distances itself from the false assertion in South Africa’s DPE news release today, in which it was said that it had compared SAA pilots’ remuneration with those at other airlines.”

“As an industry body, IATA represents, leads and serves the industry on matters of common interest, but it may not become involved in individual airlines’ commercial or employment affairs.

“For this reason, IATA is not privy to such details and has not conducted a comparison of SAA pilots’ remuneration or provided any such information to the DPE,” said the statement.

Cape Argus

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