By Tamlyn Canham
The National Union of Metalworkers of South Africa (Numsa) has labelled calls for embattled airline, SAA, to be liquidated “reckless and uncaring”.
The union made the comments after the Organisation Undoing Tax Abuse (OUTA) urged officials to put an end to “drawn-out and exorbitant” plans to revive the airline, which it says is beyond repair.
“Government should close it down and avoid wasting our country’s limited taxes. They should do the right thing and settle employees’ retrenchment packages and creditors’ compensation,” OUTA’s Executive Manager for Public Governance, Julius Kleynhans, said in a statement.
SAA business rescue on track?
The Department of Public Enterprises told Parliament this week that rescue plans are on track and SAA could exit administration by March.
But OUTA says the airline’s business rescue plan is “fundamentally flawed” and will likely fail.
“The plan is over-ambitious, based on unrealistic forecasts, does not take into account the depressing market conditions fuelled by the COVID-19 pandemic and, according to the Public Enterprises Minister, is only about half-funded,” OUTA’s Joachim Vermooten said.
The COVID-19 pandemic added to the airline’s woes.
Finance Minister Tito Mboweni allocated R10.5-billion for SAA’s business rescue plan in October last year.
The Department of Public Enterprises had originally requested around R20-billion.
The plan will also result in 80% of the airline’s workforce losing their jobs.
OUTA labels SAA plan deficient
OUTA says SAA’s five-year business plan is deficient as “it does not include the salaries of the staff who accepted the voluntary severance packages (VSP) until their VSPs are paid out” and “it does not include the salaries of the staff who would remain behind at SAA, for its new start-up” – among other reasons.
The South African Cabin Crew Association (Sacca) and Numsa have taken SAA to court, demanding the airline pay outstanding salaries.
Numsa slammed OUTA’s latest liquidation remarks.
“.@OUTASA must stop talking about taxes as if they are the only tax payers. The working class are tax papers too. Why shouldn’t our taxes be used to save jobs? They are really reckless and uncaring for calling for the liquidation of SAA,” the union wrote in a tweet.
.@OUTASA must stop talking about taxes as if they are the only tax payers. The working class are tax papers too. Why shouldn't our taxes be used to save jobs? They are really reckless and uncaring for calling for the liquidation of SAA.#SaveSOEs#FirePravin
.@SaccaUnion https://t.co/6YY4cJDhVH— NUMSA (@Numsa_Media) February 3, 2021
NUMSA & SACCA condemn .@OUTASA for their cold-hearted recklessness. Every job is worth saving in South Africa, and that should be the attitude of all progressive people who care about the future of this country.
.@ZaziNsibanyoni
.@IrvinJimSA #FirePravin #SaveSOEs— NUMSA (@Numsa_Media) February 3, 2021
Numsa says SAA’s purpose is to grow tourism and aviation in the country.
“As a result of its existence, it contributes thirty-four thousand jobs along the value chain, and its collapse is being felt in all companies which trade with it and its subsidiaries.
SAA’s purpose is to grow the tourism and aviation in the country. As a result of its existence, it contributes thirty-four thousand jobs along the value chain, and its collapse is being felt in all companies which trade with it and its subsidiaries. #SaveSOEs
.@SaccaUnion— NUMSA (@Numsa_Media) February 3, 2021
