SAA to start job cuts?

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GL
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Re: SAA to start job cuts?

Unread post by GL » Fri Nov 22, 2019 2:37 pm

SAA AND UNIONS REACH WAGE AGREEMENT THAT WILL RETURN BUSINESS TO FULL OPERATIONS

JOHANNESBURG. 22 November 2019 – South African Airways (SAA) has reached an agreement with unions to end the industrial action, which began seven days ago.
SAA, the National Union of Metalworkers of South Africa (NUMSA) and the South African Airways Cabin Crew Association (SACCA), ratified an agreement on Thursday, 21 November.
“Our country needs a joint effort to create and maintain productive industrial relations that are key to the stability required to grow and expand the economy, create and maintain jobs and promote the country’s global competitiveness. This agreement with the unions will help promote that atmosphere of positivity, inclusivity and sustainable growth,” said Zuks Ramasia, SAA’s Acting Chief Executive Officer.
Summary of the salient points of the agreement between SAA and the NUMSA and SACCA coalition are:
1. The parties agree to an increase of 5.9% on total cost of employment retrospective to 1 April 2019, which will be paid in the February 2020 payroll, subject to availability of funding.
2. The back payment for the first six months (April to September 2019) will be paid in the March 2020 payroll.
3. The remaining four (4) months (October 2019 to January 2020) back pay will be paid in the April 2020 payroll.
4. The entitlement to the salary increase and back pay as referred to in point 1, 2 and 3 above is subject to funds being obtained by SAA for such purposes and being available during February 2020, March 2020 and April 2020 as the case may be.
5. The section 189A Labour Relations Act (LRA) process, for which notice was served on the 11th November 2019 to all recognised trade unions, will be deferred effective from the date of signature of this agreement to the 31st January 2020. The deferment will only apply to this Bargaining Unit (non-management).
6. The section 189A LRA process, which commenced on Wednesday, 20 November 2019, will however continue for SAA management, with the next consultation meeting scheduled for Monday, 25 November 2019.
7. SAA and the recognised Trade Unions will apply to the relevant authorities (Department of Employment & Labour and the CCMA) for SAA to participate in the Training Layoff Scheme in terms of the rules of the scheme.
8. The parties further agree to establish a Task Team. The main objective of the Task team will be to identify and consider cost saving initiatives, inter alia, insourcing and contracts. Should the Task Team be able to realise savings, a percentage of the after-tax savings may be ring-fenced and paid to employees in the Bargaining Unit. The Task Team will discuss and agree on a formula for such payment.
9. The NUMSA and SACCA coalition agreed to, with immediate effect, call-off the industrial action, and instruct their members currently on strike to return to work latest by 23 November 2019.
“SAA is equally pleased that the National Transport Movement (NTM) also signed SAA’s wage agreement earlier today,” Ramasia added.
“We are proud of SAA employees’ sacrifices by supporting the airline in these difficult times,” said Ramasia.
“This deal, particularly the fact that we offered a 5.9% salary increase amidst grave financial challenges, is to recognise the company’s employees for the important contributions they make to the overall success of the company, economic development, and inbound and outbound tourism,” said Ramasia.
Ramasia added that the business environment over the past year has been very difficult and challenging for most businesses, including SAA.
“Global economic growth remains largely anaemic. The impact is being felt by most markets where the growth picture is fluid. As South Africa’s number one airline, we look forward to implementing this constructive agreement that helps SAA to enhance its competitiveness whilst preserving and protecting jobs,” she concluded.
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Re: SAA to start job cuts?

Unread post by HAAN » Fri Nov 22, 2019 8:22 pm

HOLY COW.
How is SAA going to able to survive after back-paying and the increase forward.
5.9% seems very high, what the average salary increase in SA, did they get a increase last year?
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Re: SAA to start job cuts?

Unread post by Baggie » Fri Nov 22, 2019 8:56 pm

The pay increase is subject to funding being available, as is the payment of back pay. Don’t know where the funding is going to come from?

5.9% is fairly close to the official inflation rate (iirc). Although if I look at my grocery bill and other expenses (medical aid, rates and electricity, school fees etc.) over the last year - not really close to “real inflation”

Standby by for more “dancing in the street” come February when there isn’t any funds to pay the increase.
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Re: SAA to start job cuts?

Unread post by paulw » Fri Nov 22, 2019 9:48 pm

HAAN wrote:
Fri Nov 22, 2019 8:22 pm
HOLY COW.
How is SAA going to able to survive after back-paying and the increase forward.
Use more pension funds money, when there is nothing, print money (not Quantitative easing)

Eventually inflation will spiral out of control.

Just my opinion but hope I am wrong.
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Re: SAA to start job cuts?

Unread post by Deanw » Sat Nov 23, 2019 8:51 am

Baggie wrote:
Fri Nov 22, 2019 8:56 pm
5.9% is fairly close to the official inflation rate (iirc).
Annual consumer price inflation was 3,7% in October 2019, down from 4,1% in September 2019.
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Re: SAA to start job cuts?

Unread post by MadMacs » Sun Nov 24, 2019 10:26 am

If the pilots really want to help the airline, they could take a 10% cut in salary and give it to the workers. :D
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Re: SAA to start job cuts?

Unread post by WILDOG » Sun Nov 24, 2019 10:52 am

MadMacs WELL SAID-COME SAA PILOTS ?? =D> =D> =D> =D>
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Re: SAA to start job cuts?

Unread post by danie.e » Sun Nov 24, 2019 6:31 pm

Eish , how do you expect those poor souls to live on R90k per month?
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Re: SAA to start job cuts?

Unread post by 1900driver » Sun Nov 24, 2019 6:58 pm

danie.e wrote:
Sun Nov 24, 2019 6:31 pm
Eish , how do you expect those poor souls to live on R90k per month?
:lol: 10% cut is anywhere near R90k.
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Re: SAA to start job cuts?

Unread post by snoopy » Mon Nov 25, 2019 6:50 pm

The way I understood it is that SAA retrenchment has been set aside till next year, just a few weeks away.

But tell me this - how is the responsibility (same work same pay) of Mango pilots deemed of any less value than that of SAA pilots? They do exactly the same work. And both airlines are 100% owned by SAA. And SAA is being bailed out by our tax money every year...for years on end.

And who flew all the extra Mango flights; to make up for the flights lost by SAA; due to their cabin crew strike wanting more money ?

Mango pilots or SAA pilots and cabin crew? At what pay? SAA pay rates or Mango pay rates?

Maybe they should do a pilot and cabin crew swap for the same pay as Mango pilots and cabin crew for a few months? Maybe that will drive a nail home for SAA, of just how good they actually have it on our tax money? Because any increase approved for SAA isnt as a result of their BETTER performance. Its just as result of union coercion on a tax payer funded airline.
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Re: SAA to start job cuts?

Unread post by FoxTROT » Mon Nov 25, 2019 7:20 pm

snoopy wrote:
Mon Nov 25, 2019 6:50 pm


And who flew all the extra Mango flights; to make up for the flights lost by SAA; due to their cabin crew strike wanting more money ?

Mango pilots or SAA pilots and cabin crew? At what pay? SAA pay rates or Mango pay rates?
Looks like most of these flights were flown by Global Aviation who specialize in wet leasing. Ie They supply the aircraft as well as the crew at an all inclusive rate.
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Re: SAA to start job cuts?

Unread post by Segg » Mon Nov 25, 2019 7:26 pm

After costing them eight days in unpaid wages in a strike that should never have happened, Numsa caved in and accepted the very same 5.9% increase it had been offered before the strike. In other words, the union cost its members a quarter of their monthly salary for absolutely no gain. Of course, that did not stop Jim from proclaiming this colossal loss as victory. A red lie!
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Re: SAA to start job cuts?

Unread post by paulw » Mon Nov 25, 2019 7:57 pm

So the Unions have SAA over a barrel on retrenchments, but are the SAA looking at voluntary retrenchment packages and voluntary early retirements?
I suppose they do but is the Unions stopping this too?

Setting up little entities and transfer people in it and then let those entities go bankrupt and pay staff a retrenchment then but in smaller sizes? Not a nice thing to do but to save the rest of the company and rest of the staff?

What is else is there besides throwing good money after bad money?
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Re: SAA to start job cuts?

Unread post by CLFO » Mon Nov 25, 2019 8:09 pm

Here I was thinking that decades of mismanagement led to the crisis. I’m relieved to find out it’s the pilots salaries that caused this mess. Should be an easy fix then. Snoopy for CEO.
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Re: SAA to start job cuts?

Unread post by snoopy » Tue Nov 26, 2019 10:35 am

I read that tax payers who contributed to SAA bailouts for years; now pensioners; are going on strike tomorrow demanding a state pension of R12000 per month, or they want their tax money wasted on SAA back, with back pay since the 1st day they started paying tax to the state.... :twisted:
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