SAA to start job cuts?

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Re: SAA to start job cuts?

Unread post by Segg » Sun Nov 17, 2019 1:47 pm

I had to check my calander today and make sure it wasn't April 1 2020....
"We are warning all passengers not to fly SAA, because your safety cannot be guaranteed. Our members are on strike. Learner pilots and other staff are being used to fly aircraft without having the requisite experience. Some are on two-week contracts," said Hlubi-Majola.
How thick do these union bosses really think the public are?

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Re: SAA to start job cuts?

Unread post by biffvj » Sun Nov 17, 2019 2:53 pm

Segg wrote:
Sun Nov 17, 2019 1:47 pm
I had to check my calander today and make sure it wasn't April 1 2020....
"We are warning all passengers not to fly SAA, because your safety cannot be guaranteed. Our members are on strike. Learner pilots and other staff are being used to fly aircraft without having the requisite experience. Some are on two-week contracts," said Hlubi-Majola.
How thick do these union bosses really think the public are?

Link Here
It would seem as if the unions and others are being paid by outside elements to bring SAA and other SOE's down, perhaps part of a global plan to crash the SA economy totally so that outside control can be established before an economic rebuild.
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Re: SAA to start job cuts?

Unread post by Only » Sun Nov 17, 2019 3:07 pm

I think this is the end of the strike, SAA will probably sue NUMSA for that statement as it can’t be true.
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Re: SAA to start job cuts?

Unread post by GL » Sun Nov 17, 2019 6:18 pm

The statement was corrected to remove the reference to apprentice pilots.
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Re: SAA to start job cuts?

Unread post by GL » Sun Nov 17, 2019 6:18 pm

STATEMENT BY ZUKS RAMASIA, ACTING CHIEF EXECUTIVE OFFICER OF SOUTH AFRICAN AIRWAYS

Good evening ladies and gentlemen.

My name is Zuks Ramasia.

I am the Acting Chief Executive Officer of South African Airways.

Thank you for accepting our invitation at short notice to attend this media briefing.

We decided that the most effective way to communicate with you is to give context in person. We will address you on the following key themes:
• Safety and Security;
• Update on discussions with Labour;
• The call for a Secondary Strike; and
• Provide an Operational Update.

1. Safety and Security

The safety and security of our customers, aircraft and employees are of paramount importance to South African Airways.

SAA calls on the South African Cabin Crew Association (SACCA) and the National Union of Metalworkers of South Africa (NUMSA) to retract the untruthful and unfounded allegations that flying the national carrier is in any way unsafe.

SAA has a proven safety record and we have an unwavering commitment to safety. The safety and security of passengers and crew is the highest single priority to SAA. We do not compromise on that.

For example, we were the first airline in the world to train our pilots on ‘Upset Recovery Training’, and our instructors train airlines around the world on this.
We remain committed to ensuring the highest levels of safety and security on all our flights.

The unions’ allegations are malicious and represent an unfounded attack, as well as an insult to the Civil Aviation Authority, South African Airways, and South African Airways Technical (SAAT).

It is important to state that SAA is mindful of its obligations to comply with all regulations and continue to ensure safe and secure operations. SAA will therefore maintain the required levels of personnel, including oversight post holders and necessary compliance training during this strike period.

We call on NUMSA and SACCA to retract these untrue and unfounded allegations with immediate effect. If they fail to do so, we will consider taking legal action. We would never put our long established reputation at risk. The safety of our customers is always our prime responsibility.

SAA flight deck, cabin crew and technicians are highly qualified.
SAA prides itself on producing world class and highly trained pilots, cabin crew and technicians. This is further evidenced by the fact that many other airlines are recruiting from us.

SAA pilots currently train other pilots on safety procedures. Many airlines across the world has SAA pilots in their training structures.

SAA is mindful of its obligations to comply with all regulations and continue to ensure safe and secure operations. SAA will therefore maintain the required levels of personnel, including oversight post holders and necessary compliance training during this strike period.

SAA Pilots are NOT on strike neither are trainee pilots used. SAA trained cabin crew members and all of them meet the SA CAA requirements.

SAA aircraft go through rigorous inspections as prescribed.

Intimidation of employees

SAA further condemns the intimidation of employees who have decided to work.

Let us be clear: describing some of our employees as ‘traitors’ and threatening that “we know where you are” will not be tolerated. We will always protect our employees’ right to decide for themselves and serve our customers.
The airline will not tolerate those seeking to intimidate those wishing to report for duty.

Employees who intimidate or assault other employees, cause damage to SAA property or engage in any criminal act or misconduct may be liable for criminal prosecution, internal disciplinary action or arrested.

Employees are encouraged to immediately report any acts of intimidation, damage to property, or any safety related concerns to the Security Hotline on (011) 978-1018.

Security personnel at all access gates and parking areas has been increased, assisted by members of SA Police Services (SAPS) to ensure that employees and vehicles are safe, including monitoring of access roads.

Striking is a personal choice. No one should be pressured by a union or striker to participate in the strike.

2. Update on discussions with Labour

The CCMA met with the company and the unions yesterday, Saturday 16 November, in terms of the Section 150 process following SAA’s request to the Commission for Conciliation, Mediation and Arbitration (CCMA) to conciliate the salary increment impasse between SAA and SACCA/ NUMSA and NTM.

The CCMA Commissioners ended a long day’s proceedings last night, tasking the company to consider options on the way forward and the company will then revert to the Commissioners in due course.

The Commissioners will then reconvene the discussions between the parties.

Demands by NUMSA and SACCA

Since NUMSA and SACCA gave SAA 48 hours’ notice to strike on Tuesday, 12 November 2019, their demands have been amended three times.

The company has written two letters to these two unions requesting clarity on what exactly they are demanding on behalf of their members, to ensure that there is no confusion and/or uncertainty. Yesterday they relayed their demands to the CCMA Commissioners.

NUMSA and SACCA have demanded an 8% salary increase. This is the only lawful demand made by NUMSA and SACCA under the current strike notices.

SAA’s position

The company has advised that the airline cannot afford to pay any salary increases. However, it has offered the unions a 5.9% salary increase effective in the March 2020 pay month. In addition, the company will pay the first six months back-pay, from 1 April 2019 to 30 September 2019, in March 2020; and the remaining six months back-pay in April 2020, provided that SAA has received funds to do so.

The company has repeatedly communicated the precarious financial position of the company, the negative and dire ramifications that the company – and, by implication, each and every employee – would be exposed to by employees engaging in industrial action.

When you strike, you don’t get pay! The salary loss as a result of an employee who embarks on strike action for a period of seven (7) days will take the striking employee 119 days (approximately four (4) months) to recover this salary loss if the 5.9% salary increase on Total Cost of Employment (TCE), is accepted and implemented.

Impact on SAA

We again wish to reiterate that the intended strike action will have a serious financial implication to the company. We urge the unions to reconsider the strike, which will without doubt, place SAA’s future in jeopardy. Please appreciate the fatal damage to SAA unless there is a resolution to this dispute.

3. Call for a Secondary Strike

SAA is concerned about NUMSA’s intention to start consultation with all sector players for a full-on Aviation Strike. The intent of a secondary strike is to cause disruption, bring all airport operations to a halt and create huge damage to the South African economy. NUMSA has also called on SATUWU and NTM to join the strike.

A secondary strike will affect the competitiveness of the South African economy as a whole.

4. Operational Update

We are pleased that SAA 222 from OR Tambo International Airport to São Paulo, which was scheduled to operate on Sunday morning, is now airborne en route to Brazil.

The return flight from São Paulo to OR Tambo International Airport is expected to operate as scheduled and arrive back in Johannesburg on Monday morning.

The other five international departures from OR Tambo International Airport on Sunday 17 November 2019, were flights to New York, London, Frankfurt, Munich and Washington DC via Accra. The first departures from OR Tambo International Airport to Perth and Hong Kong are expected to operate as scheduled from Monday, 18 November 2019.

SAA’s departures from its international stations on Monday, 18 November 2019 include: London, New York, Washington DC (via Accra), Munich and Frankfurt to OR Tambo International Airport, and are expected to arrive on Tuesday, 19 November 2019.

What passengers should do

Passengers are advised to report to their departure airport as normal when in possession of a confirmed itinerary. SAA’s domestic and regional flights remain cancelled.

SAA has been working with its subsidiary airline, Mango, and sister airline, SA Express, to re-accommodate as many customers as possible travelling on domestic services.

Depending on availability, customers traveling to regional destinations are being re-accommodated on SA Airlink, a partner airline of SAA, and other airlines where possible.

SAA apologises to all its valued customers for the inconvenience and frustration caused by the cancellation of flights as a result of ongoing industrial action.

We hope all our customers understand that the cancellations have been beyond our control. We pledged to rebook all passengers caught up in the flight cancellations. We are working hard towards this goal and we are pleased to now be able to resume flights to all our international destinations.

Customers seeking a refund or wishing to rebook their travel on a future SAA service have until 30 November 2019 to finalise their arrangements.

Thank you.
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Re: SAA to start job cuts?

Unread post by pwnel » Sun Nov 17, 2019 9:23 pm

Segg wrote:
Sun Nov 17, 2019 1:47 pm
I had to check my calander today and make sure it wasn't April 1 2020....
"We are warning all passengers not to fly SAA, because your safety cannot be guaranteed. Our members are on strike. Learner pilots and other staff are being used to fly aircraft without having the requisite experience. Some are on two-week contracts," said Hlubi-Majola.
How thick do these union bosses really think the public are?

Link Here
No one can be that stupid. As they say "Cuo bono" - who benefits? The competition? Bribed NUMSA officials (by whom)? Etc etc.
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Re: SAA to start job cuts?

Unread post by Roger » Mon Nov 18, 2019 2:13 pm

And it continues:
19 and 20 November flight operations
SAA has announced that it is cancelling all Domestic flights (within South Africa) on the 19th and 20th of November 2019.
The following regional flights will operate on Tuesday, 19 November: Accra, Lagos, Lusaka, Maputo, Windhoek and Harare.
SAA’s international departures to Frankfurt, London, Munich, New York and Washington DC via Accra are expected to operate as scheduled on today and return to OR Tambo International Airport on Tuesday, 19 November; while departures from OR Tambo International Airport to Perth and Hong Kong as also on schedule for Monday.

While SAA’s domestic flights remain cancelled, the airline is working with its subsidiary airline, Mango, and sister airline, SA Express, to re-accommodate as many customers as possible travelling domestically.

Depending on availability on regional routes where SAA has not yet reinstated its services, passengers are being re-accommodated on SA Airlink, a partner airline of SAA, and other airlines where possible.
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Re: SAA to start job cuts?

Unread post by HJK 414 » Mon Nov 18, 2019 2:50 pm

Roger wrote:
Mon Nov 18, 2019 2:13 pm
And it continues:
19 and 20 November flight operations
SAA has announced that it is cancelling all Domestic flights (within South Africa) on the 19th and 20th of November 2019.
The following regional flights will operate on Tuesday, 19 November: Accra, Lagos, Lusaka, Maputo, Windhoek and Harare.
SAA’s international departures to Frankfurt, London, Munich, New York and Washington DC via Accra are expected to operate as scheduled on today and return to OR Tambo International Airport on Tuesday, 19 November; while departures from OR Tambo International Airport to Perth and Hong Kong as also on schedule for Monday.

While SAA’s domestic flights remain cancelled, the airline is working with its subsidiary airline, Mango, and sister airline, SA Express, to re-accommodate as many customers as possible travelling domestically.

Depending on availability on regional routes where SAA has not yet reinstated its services, passengers are being re-accommodated on SA Airlink, a partner airline of SAA, and other airlines where possible.

Well,

Looks like the Unions will not be satisfied until everyone is without a job …….. C'est la Guerre ……
Flying the International and regional flight does not help much as the feeder flights will not be operating.
No departing passenger in his right mind will risk the fact that he may not be getting to the International Hub as a result of domestic strikes and the arriving passenger will not gamble on a re-booked spot on some "other carrier" that "may be able" to accommodate.

I don't get it - why not just pull the plug.
It is a hopeless exercise as the Politicians simply do not have the insight - experience and or wherewithal to make decisions that would create a long term perspective for SAA. Stop the suffering - and get everyone on track for a better and new future.

JK
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Re: SAA to start job cuts?

Unread post by marius scheepers » Mon Nov 18, 2019 3:33 pm

My thoughts are what does the Lessor('s) of the 4 A350 feel, surely they must have received some gaurantee before deliveries took place or could have halted some deliveries.
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Re: SAA to start job cuts?

Unread post by PJL » Mon Nov 18, 2019 4:09 pm

HJK 414 wrote:
Mon Nov 18, 2019 2:50 pm
I don't get it - why not just pull the plug.
It is a hopeless exercise as the Politicians simply do not have the insight - experience and or wherewithal to make decisions that would create a long term perspective for SAA. Stop the suffering - and get everyone on track for a better and new future.

JK
I don't think that the government has the money to repay the loans should they get called up and it is for this reason that they are scared of pulling the plug!!

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Re: SAA to start job cuts?

Unread post by marius scheepers » Mon Nov 18, 2019 4:26 pm

PJL wrote:
Mon Nov 18, 2019 4:09 pm
HJK 414 wrote:
Mon Nov 18, 2019 2:50 pm
I don't get it - why not just pull the plug.
It is a hopeless exercise as the Politicians simply do not have the insight - experience and or wherewithal to make decisions that would create a long term perspective for SAA. Stop the suffering - and get everyone on track for a better and new future.

JK
I don't think that the government has the money to repay the loans should they get called up and it is for this reason that they are scared of pulling the plug!!

PJL
Also are there not cross loans to other parastatals that could also become payable on default?
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Re: SAA to start job cuts?

Unread post by Swartbok » Mon Nov 18, 2019 5:49 pm

Unfortunately I am of the opinion that if it doesn’t go the unions way soon they’ll be trying to rope in the the unions of other airlines and even non members for extra support, even if by violent means to achieve their goal and officially deny and condemn the practice. As has happened before in history.

It’s the SA way.
Call me pessimistic if you want.
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Re: SAA to start job cuts?

Unread post by HJK 414 » Mon Nov 18, 2019 9:25 pm

PJL wrote:
Mon Nov 18, 2019 4:09 pm
HJK 414 wrote:
Mon Nov 18, 2019 2:50 pm
I don't get it - why not just pull the plug.
It is a hopeless exercise as the Politicians simply do not have the insight - experience and or wherewithal to make decisions that would create a long term perspective for SAA. Stop the suffering - and get everyone on track for a better and new future.

JK
I don't think that the government has the money to repay the loans should they get called up and it is for this reason that they are scared of pulling the plug!!

PJL

PJL,

That is not a difficult one,
Turn the debt into Government bonds (the banks would jump at it in my view).
That would make the debt interest levied (as it is now) (bonds are yield paying) and the problem is off the table for the moment.

JK
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Re: SAA to start job cuts?

Unread post by evanb » Mon Nov 18, 2019 9:33 pm

HJK 414 wrote:
Mon Nov 18, 2019 9:25 pm
That is not a difficult one,
Turn the debt into Government bonds (the banks would jump at it in my view).
That would make the debt interest levied (as it is now) (bonds are yield paying) and the problem is off the table for the moment.
Not so sure they would. The current interest rate they get is significantly higher than the market rates. They'd rather just be paid cash rather than having the transaction cost of liquidating them on the secondary market. If Treasury need to sell a bond to raise the cash the banks will make Treasury take the cost for doing that.
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Re: SAA to start job cuts?

Unread post by HJK 414 » Mon Nov 18, 2019 9:40 pm

evanb wrote:
Mon Nov 18, 2019 9:33 pm
HJK 414 wrote:
Mon Nov 18, 2019 9:25 pm
That is not a difficult one,
Turn the debt into Government bonds (the banks would jump at it in my view).
That would make the debt interest levied (as it is now) (bonds are yield paying) and the problem is off the table for the moment.
Not so sure they would. The current interest rate they get is significantly higher than the market rates. They'd rather just be paid cash rather than having the transaction cost of liquidating them on the secondary market. If Treasury need to sell a bond to raise the cash the banks will make Treasury take the cost for doing that.

Fair enough,

There are differentials in the return for the banks - and you are right - they would place the burden on Treasury.
Point remains that they (Government) could find a way to manage an orderly closure without having to front up all the outstanding Cash to the banks. (there are possibilities to mitigate that)


JK

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