Public Management

South African Airways to cut 2,700 jobs under layoff agreement

Wednesday, 08 July 2020 18:50
South African Airways to cut 2,700 jobs under layoff agreement

(Ecofin Agency) - About 2,700 workers at South African Airways will lose their jobs under a voluntary severance package agreed with the workers’ unions. The information was recently reported by the South African public enterprises department, which stressed that the SAA Pilots Association did not give a clear stance about the deal.

“In terms of today’s agreement, 1,000 SAA employees will be retained. Around 2,700 SAA employees will be retrenched and will be able to access the VSPs [voluntary service packages] as soon as a business rescue plan for SAA is endorsed by a creditors vote,” the department said in a statement. The vote is scheduled for July 14.

The deal however includes a social plan and a skill development program to be deployed over 12 months for those who lost their jobs. In total, severance payments are estimated to be about R2.277 billion ($134 million). According to the figures provided, the pilot association accounts for most of the total downsizing costs, with R1.96 billion ($70.4 million) in severance payments.

According to a projected assessment by rescue practitioners, South African Airways is expected to lose over $349 million over the next three years following the implementation of this recovery plan. According to the plan, the fleet would be reduced to 6 aircraft between July 2020 and February 2021, with a workforce of 1,000 employees. It would then be increased to 19 narrow-body aircraft for the next nine months, and then 7 wide-bodied A350-900s would enter into service starting in December 2021 to form a total fleet of 26. By then, the workforce would increase to 2,900 employees.

“The department believes that the VSPs [voluntary severance packages] and a positive vote to finalize the business rescue process would be the most expeditious option for the national carrier to restructure its affairs, its business, debts and other liabilities, resulting in the emergence of a new viable, sustainable, competitive airline that provides integrated domestic, regional and international flight services,” the statement said.

Romuald Ngueyap

Additional Info

  • communiques: Non
  • couleur: N/A
 
Finance


 
Telecom


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.