The sale of the restructured South Africa Airways (SAA) to a private consortium at an undisclosed price may provoke further labor unrest. The workers are already angry at the impending dismissal of 225 more workers
The Department of Public Enterprises, which had repeatedly assured the unions that the national airline will not be liquidated, came out in support of a so-called “business rescue plan” which will result in its effective liquidation
Three major unions have offered to take up to 49% pay cut for the next two months due to the financial distress at South African Airways, while Business Rescue Practitioners have allegedly rejected the unions’ offer and recommended the winding down of the airlines
The “rescue plan” for Eskom unveiled by the South African minister for public enterprises proposes the unbundling of the state-owned company and increases reliance on private Independent Power Producers, which the unions claim, is the root cause of Eskom’s financial troubles.