Billions wasted on severance packages for SAA staff who will return when airline relaunches

A South African Airways 747 aircraft stands on the tarmac at Heathrow Airport’s Terminal Four, London. Picture: Ian Waldie/Reuters/ANA Archives

A South African Airways 747 aircraft stands on the tarmac at Heathrow Airport’s Terminal Four, London. Picture: Ian Waldie/Reuters/ANA Archives

Published Nov 9, 2020

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Dear Ministers Mboweni and Gordhan

I have been employed at South African Airways for over two decades. Over this period, the company has gone through many tumultuous periods. I have witnessed three restructuring processes during my life at SAA, including the current one.

I can confess that the current process overshadows the other two processes due to the amount of money spent thus far, and the pain it has brought to employees, the most important asset of any organisation. It brought with it mental health (problems), death, poverty, suffering and unprecedented levels of substance abuse.

Many of my colleagues have suddenly become beggars, their livelihoods and families threatened, on the verge of losing their precious possessions. The over 3 000 employees that accepted the voluntarily severance packages have temporary reprieve by the virtue of accessing their pension fund savings.

However, the more than 1 300 employees that remained in the company continue to suffer after their salaries were suspended in May 2020.

These employees had to contend on surviving on the UIF Covid-19 relief funds (TERS) for four months. When that was taken away, the final nail was hammered into their brains. More have attempted suicide, and many will try other sinister ways to spare themselves the pain and suffering brought by not having an income, and not knowing how long they will have to endure this.

It is a pity that billions of rands will be wasted on settling severance packages of employees who will most likely return to SAA as soon as the relaunch is started. One wonders why employees who were in critical positions were let go, when the BRPs knew that they would have to recall them to restart the airline.

Is this not a classic example of fruitless and wasteful expenditure?

When are we going to learn, honourable ministers?

How on earth did you allow this to happen?

This same phenomenon happened in 2015/16, during the last restructure, where many of the retrenched staff were rehired within six months. Millions were wasted then, and we will unashamedly waste more in 2020.

What was the rationale for approving all the VSP applications? Will anyone ever account for the waste of tax payers’ money?

Are you aware of the current plan to rehire these employees in order to restart the airline? Do you approve of this level of wastage? It is a pity that hard-earned tax payers’ funds will again be thrown into a bottomless, dark and stinky pit.

I do hope that the same level of vigour and bravery shown when justifying the R10.4 billion bailout will be applied to hold the BRPs to account for their irrational decisions during the business rescue process. If this is not extensively addressed, I can confidently assure you that SAA will be back for more billions within the next three years.

A loyal servant of SAA