SAA could cut 944 jobs in restructuring

SAA, the state-owned airline that is relying on  government bailouts to stay afloat, is starting a restructuring process that may lead to a reduction of its 5,146-strong workforce.

The airline, which received a R9.2bn lifeline in finance minister Tito Mboweni’s medium-term budget policy statement in October, has started a consultation process with employees in line with section 189 of the Labour Relations Act, acting CEO Zuks Ramasia said in a statement on Monday.

Ramasia said SAA’s balance sheet remained  weak despite recent substantial capital injections from the government.

“Our continued losses and reliance on government guarantees to borrow money from lenders  have increased the interest costs which impacts the operating cost of the business,” she said.

The proposed restructuring will include all SAA divisions and departments, but excludes subsidiaries  SAA Technical and budget airline Mango.

While no final decision was taken on numbers, Ramasia said about 944 employees may be affected.

“These hard decisions were necessary to put SAA on a more sustainable footing while ensuring we continue to offer customers the best service.

“It is a matter of great regret that that we will part ways with some loyal colleagues.” — BusinessLIVE