 is offering a severance package to its 5,000 employees. After the South Africa government disclosed that more){kind=link}
South African Airways (SAA) is offering a severance package to its 5,000 employees. After the South Africa government disclosed that more funds for rescue effort will no longer be made available, the SAA administrators revealed this proposal. The proposal which hasn’t been finalized was shown to trade union this week.
This gives the sign that SAA is not doing well and is on the verge of collapsing. In December, SAA had to stop international flight following the shocking outbreak of the pandemic disease. The state-owned airline slid into a form of bankruptcy protection towards the close of 2019 (December).
Employees would have their employment terminated according to the proposal made by the SSA authorities because It seems rather improbable that the crumbling airline would be resuscitated. However, they would be entitled to one week’s pay for every year of service, one month’s pay in lieu of notice pay and pay for outstanding annual leave.
To make sure employees get their severance package stated in the proposal, SSA will dispose of its assets to generate funds. Although SSA authorities and their spokesperson hasn’t commented or confirmed the proposal, two unions attested to this. The Department of Public Enterprises that supervises SSA stated that there is no agreement about laying off their employees.
According to the department, discussions are on-going on how SSA can be resuscitated and the success of the business rescue process with their employees kept in mind. The state-owned airline hasn’t been profitable since 2011 and had revived the huge amount of 20 billion rands ($1.1 billion) in bailouts. This huge fund sunk by SSA affects public resources at a time of weak economic growth.