South African Airways cancels flights, offers striking employees new wage increase

South African Airways cancels flights, offers striking employees new wage increase
Source: Reuters
Date: 14-11-2019 Time: 10:11:08:am

South African Airways (SAA) has cancelled flights scheduled for Friday and Saturday because of a pending strike by a majority of employees but said on Thursday it hoped its revised wage offer would avert the walkout at the state-run carrier.

SAA has failed to turn a profit since 2011 while relying on state bailouts to fund a growing financing gap.

The airline is also without a permanent chief executive and has yet to file annual results for the two most recent financial years because of concerns about its viability as a business.

Unions representing about 3,000 of its 5,000-member workforce said on Wednesday that cabin crew and other workers would strike over wages and plans to the cut more than 900 jobs.

The carrier said on Wednesday it might never recover if the strike went ahead.

Unions are demanding an immediate 8% increase, and on Thursday SAA after late night negotiations said it would offer a 5.9% raise from April when it hopes to have secured the necessary funding.

“The increase is not immediately available. We can only implement it once we have secured funding,” SAA spokesman Tlali Tlali said during a live interview on television news channel eNCA.

“We have a meeting scheduled for today at 2 o’clock and we are hopeful we will be able to resolve the issue ... It will include all the unions ... and if the meeting yields positive results we will then activate some contingency plans that will allow us to reinstate flights,” said Tlali.

Only flights directly operated by SAA would be affected. Flights by subsidiaries Mango, SA Express and SA Air Link, as well as those of private operators, would not be affected, SAA said.

The airline said it expected unions to respond at an emergency meeting at 1200 GMT.

Unions said the strike would begin at 4 a.m. (0200 GMT) on Friday and go on indefinitely. They are calling on SAA’s check-in, ticket sales, head office, technical staff and ground staff to take part.

Zazi Nsibanyoni-Mugambi, president of the South African Cabin Crew Association (SACCA) that is leading the strike with the National Union of Metalworkers of South Africa (NUMSA), said the offer was unacceptable.

“They really need to get serious, 5.9% simply won’t cut it. It’s just over 1% more that we are asking for and we think its attainable, so last night we asked SAA (negotiators) to go and get a fresh mandate from management,” said Nsibanyoni-Mugambi.

Numsa spokeswoman Phakamile Hlubi-Majola said the union was still consulting its members on whether to accept or reject the revised wage offer.

SAA airline flies around 6.8 million passengers annually to six continents with routes to New York, London and Hong Kong among its eight international offerings.