By Daniel Itai.
Johannesburg, South Africa. (News Of The South) – US$1.1 billion has been allocated by the ministry of Finance to the embattled state owned South African Airways (SAA), to settle guaranteed debt and interest.
Finance minister Tito Mboweni, revealed the cash injection during his budget speech earlier on today.
“Over the medium term, government has allocated R16.4 billion (US$1.1 billion), the associated restructuring costs will be reprioritised within the budget,” said Mboweni.
Last year the embattled airline was put under Business Rescue by the government in a bid to salvage the state owned entity. However, the National Union of Metalworkers of South Africa (NUMSA) and the South African Cabin Crew Association (SACCA) are demanding meaningful engagement during the Business Rescue Process (BRP).
“The wrestling match playing out in the public domain will not help anyone but may inadvertently expose the entity to its demise, and hence we call upon all stakeholders to negotiate this precarious terrain with much caution as all may be lost while engaging in casting public aspersions at each other instead of constructively engaging in finding solutions for all people of SAA,” said Mashudu Raphetha, president of the National Transport Movement.
NUMSA and SACCA want the workers at SAA first to be consulted on a draft of the BRP so they can make proposals for possible alternatives if need be.
The two unions claim that attempts are being made to get their members to accept changes to their terms and conditions of employment.
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