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.
Update: SAA on the flightpath to restoring normal service
JOHANNESBURG. 22 November 2019 – South African Airways (SAA) is pleased to announce that the airline will be restoring a full flight schedule in stages over the weekend.
This process has been made possible following the agreement reached to resolve the ongoing industrial dispute between SAA and the coalition between the National Union of Metalworkers of South Africa (NUMSA) and the South African Airways Cabin Crew Association (SACCA) unions.
In practical terms, this means that SAA will operate a near normal service on Saturday 23 November 2019. Whilst there will be selected cancellations, principally on the domestic network and on a small number of regional flights, the airline expects to be able to provide service to all customers. Any customers requiring re-accommodation on a rescheduled service or on another airline will be contacted accordingly or assisted at their departure airport.
On Sunday, 24 November 2019, SAA expects to operate its full schedule as usual. This means that SAA will operate services as usual on all three of its networks: domestic, regional (points on the African Continent) and international.
“We are delighted to be able to announce a resumption in normal schedules. On behalf of SAA, I would like to express our deep regret at the inconvenience caused to our loyal customers during this industrial dispute. We will continue to assist those passengers, that have still not been able to travel, to reach their intended destination as soon as possible,” said Philip Saunders, SAA’s Chief Commercial Officer.
“At the same time, I would like to express our commitment to return to the skies with renewed passion and energy to serve all our customers. We also thank our airline partners, Mango, Airlink and SA Express, for assisting us during this difficult period,” Saunders added.
Customers holding a confirmed itinerary may proceed to their departure airport as usual. In line with standard practice, SAA recommends its customers to visit www.flysaa.com for all further flight updates.
Statements issued by Tlali Tlali, SAA Spokesperson, 22 November 2019
