Kaya News Reporter
- Over 200 SAA workers will be laid off at the end of March 2022
- Due to lack of funding the government run training lay-off scheme has come to an end
- Workers will receive their severance packages once their contracts are terminated
Public Enterprises Director-General, Kgathatso Tlhakudi has confirmed that South African Airways (SAA) will be parting ways with over 200 employees.
This after the government-run training lay-off scheme that they were part of has come to an end. Due to lack of funding, government is unable to sustain the training scheme.
The objective of the scheme was to keep people in reserve, in the event that SAA would be able to turn its financial instability around.
SAA went into business rescue in December 2019, which ended in April 2021.
The airline cut almost 80% of its workforce and reduced liabilities to R2.6 billion from R38 billion.
During the restructure process, these 200 plus staff members opted to join the training scheme instead of taking the severance packages that were offered.
The scheme was run by the Department of Labour to alleviate the job losses at the airline.
With the airline unable to fund the scheme itself going forward, government has decided to end the scheme before that time comes.
Over 200 employees say they were notified via SMS on Tuesday that they will be laid off.
The National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (SACCA) have handed over a memorandum to Tlhakudi.
Unions are protesting the termination of the training contracts, citing corruption is still at play at the airline.
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