This archive report was first published on 13 November 2019.
Published on November 13, 2019, South African Airways is embroiled in a dispute with labor unions over its plans to reduce its workforce by approximately 18%.
The airline's restructuring plan aims to cut operating expenses, with the company planning to reorganize all units except low-cost carrier Mango, Air Chefs, and the SAA Technical Unit.
As a result, around 944 workers out of the 5,149 employees in the company are set to be dismissed.
The South African trade unions have expressed their opposition to the airline's decision, accusing the airline of failing to consult with the unions.
According to Sizwe Pamla, the federation spokesperson, the airline's announcement was 'reckless' and that the airline cannot simply 'throw away people into unemployment without talks with the unions.'
He further stated that there are alternative options that can be explored.
Notably, Ethiopian Airlines and Richard Branson of Virgin Atlantic have expressed interest in buying a stake in the troubled South African Airways.
South African Airways has reported over 28 billion rand in losses over the past 13 years and has received a 5.5 billion rand bailout from the government.
The airline is yet to agree on a repayment plan with its creditors.
According to Martin Kemp, South Africa Airways' acting head of resources, the restructuring plan aims to save the airline around 700 million rand a year in costs and is expected to be completed by the end of March next year.
