Serious questions of conflict of interest have been raised as the business rescue practitioners ask the ailing airline to pay R250,000 per month to Redford Capital – a consultancy firm of which they themselves are the directors.
The crisis facing South African Airways today is due to the failure of the state to fulfill the collective agreements on how to rescue the state company, unions allege
The unions argued in court that proper consultations were not held with them before deciding on retrenchment packages
The unions are appealing to a higher court after a labor court ruled against the their application seeking an interdiction against SAA’s decision to close 11 routes. The unions are arguing that it will lead to retrenchments
Along with the cancelation of these domestic routes, the workers employed will also be retrenched. This lay-off is in violation of the collective agreement reached between the workers and the management in November 2019.