South Africa Government Offers SAA Staff Less Than Legally Required

South Africa’s Department of Public Enterprises has asked workers at the bankrupt national airline to accept three months’ pay rather than the eight months they are entitled to by labor law and the terms of a business rescue plan, according to a labor union leader. The offer was made at the weekend and will not be accepted “on our watch,” Grant Back, chairman of the South African Airways Pilots Association, said Monday. The department paid 1.5b rand ($99m) to the administrators of the airline last week, but the money can’t be used because the administrators say the conditions imposed breach labor and companies regulation. South African Airways, which was placed under administration in December last year, hasn’t flown commercially since March and its business rescue plan details a hierarchy of payments including severance packages for dismissed workers. “The DPE considers the agreement reached with some unions” for three months payment to be fair, the department said Monday. “Certain unions are deliberately undermining the process and seem to be in alliance with opposition parties to undermine the business rescue process.”<br/>