NUMSA and SACCA relieved that the business rescue process at SAA is at an end
14 July 2020
The National Union of Metalworkers of South Africa (NUMSA) and the South African Cabin Crew Association (SACCA) have noted the outcome of the SAA Creditors Meeting today and the approval of the Business Rescue Plan. Although we are not entirely satisfied with the plan and will deal with the shortcomings in due course, we are relieved that the drawn-out and rather wasteful Business Rescue process is now coming to an end. We have fought very hard to prevent the liquidation of the airline and we are relieved that this strategic State Owned Entity (SOE) which plays such a crucial role in the aviation and tourism sector, has been saved from total collapse.
However, crucial to the success of a restructured SAA is a complete break with the past especially with respect to past management and executives who were ultimately responsible for SAA's demise. We have noted that Philip Saunders has been appointed as interim CEO of the airline. Philp Saunders is currently the Chief Commercial Officer at SAA and therefore a member of the current executive management at the airline. He is part of the very same disastrous management team which brought the airline to the brink of collapse. This is why we are reiterating our demand that that individuals who are appointed to management and the board, must have had no connection to past boards or executive management at SAA. We need fresh ideas and visionary, dynamic leadership without the baggage of the past, if we are to succeed in turning the airline around. We need to have a permanent board and executive management appointed as soon as possible.
Furthermore, Mr. Saunders has not been a CEO of any significant organization. His experience has been as an executive of smaller single airport airlines such as Air Malta, nothing close to the complexity and scale of SAA. His lack of experience is likely to fail him and he will also fail the airline, an eventuality we cannot afford. We however understand that he is appointed on an interim basis, and we demand that DPE must come up with a transparent process of appointing a competent GCEO with the necessary expertise, experience and knowledge to lead the airline.
It remains our expectation that the DPE will honor the principles agreed upon in the consultative agreement to have a new board that excludes all the current board members, and that a new team of senior executives will be appointed through a transparent process.