SAA business rescue practitioners get leave to appeal lay-offs

SA Airways’ business rescue practitioners (BRPs) insist retrenching staff and receiving adequate funding is the best option to save the troubled airline.

The airline’s BRPs were this week granted leave to appeal the recent Labour Court ruling against their plan to retrench workers.

The National Union of Metal Workers of SA and the SA Cabin Crew Association, which represent most SAA workers, had previously filed an application to halt the proposed retrenchment.

“We are pleased with the ruling,” said the BRPs. “Our position in seeking leave to appeal on the basis that another court may come to a different decision has been accepted.

“We will seek an urgent date for the matter to be heard by the Labour Court.”

In their application for leave to appeal, the airline’s BRPs argued that it was of public interest to get clarity on whether a business rescue plan was first required before starting retrenchment processes.

According to the practitioners, the labour court judgment conflicted with another judgment on a similar case.

“It is the considered view of the business rescue practitioners that there is still a reasonable prospect of rescuing SAA, subject to the receipt of unequivocal commitment thereto and the requisite funding,” they said.

“We have, however, made our view clear that if there is no funding, we believe that the best option is a structured wind down, which is a better option than liquidation, which leaves very little on the table for creditors and less for employees.”

The ailing airline has not made a profit since 2011 and depended on bailouts from government, which have totalled R20 billion over the past three years.

The BRPs are expected to present a new business rescue proposal at the end of May. They are seeking an urgent date for their appeal to be heard by the Labour Court.

“A business rescue process requires a lot of consultation with all relevant stakeholders,” added the practitioners. “We continue to engage and consult.”

– rorisangk@citizen.co.za

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