Labour unions, and representatives of non-unionised managers and ground staff have agreed to accept the South African Airways (SAA) voluntary severance packages (VSPs) which will be supported by a social plan and skills development programme for employees who will be retrenched.

During a Labour Consultative Forum (LCF) meeting, convened yesterday by labour unions, the parties agreed “that they had no objection to SAA/DPE offering to individual employees a Voluntary Severance Package as proposed by the DPE”.

The position of the SAA Pilots Association (SAAPA) in respect of the VSPs is still unclear at this stage. SAAPA has indicated that it does not oppose the outcome of today’s LCF meeting but the union is seeking to embark on a parallel process through which it wants to consult the Business Rescue Practitioners (BRPs) for SAA about the severance packages.

However, the VSPs have been endorsed by the National Transport Movement (NTM), the South African Transport and Allied Workers Union (SATAWU), the Aviation Union of Southern Africa (AUSA), Solidarity, the National Union of Metalworkers of South Africa (NUMSA), the South African Airways Cabin Crew Association (SACCA) and representatives of SAA non-unionised managers and ground staff.

In terms of the agreement, 1 000 SAA employees will be retained. Around 2 700 SAA employees will be retrenched and will be able access the VSPs as soon as a business rescue plan for SAA is endorsed by a creditors vote.