Task teams formed to try resolve SAA pay deadlock

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Fedusa, the United Association of South Africa (UASA) and the Airline Pilots' Association of South Africa (ALPA-SA) had sought the meeting with the Treasury as part of a commitment by labour to engage with the state to reposition state-owned enterprises with an eye on economic growth, he said.

The meeting comes as SAA is locked in wage negotiations with cabin crew and while the Treasury is looking at merging the three state-owned airlines - SAA, SA Express and Mango - under an aviation holding company.

SAA is technically insolvent and has been unable to table its 2014-15 financial results since they were due in September 2015.

Earlier in May, SAA chairwoman Dudu Myeni said at a meeting with staff and President Jacob Zuma that the airline would continue without guarantees because its "aircraft are always full", subsequently prompting unions to raise their wage demands to double-digit levels. The airline later clarified these comments, saying Myeni had meant the airline could continue to operate, and that this did not mean it had sufficient cash for high wage demands.

Four unions are currently engaged with SAA in wage talks.

National Transport Movement (NTM) president Ephraim Mphahele said on Monday negotiations were at a "sensitive stage". The NTM - the largest union in the bargaining unit - had not yet declared a dispute, he said, while continuing to press for double-digit increases.

SAA said it remained committed to a resolution in the wage talks. A revised offer had been presented to unions on Thursday, with the parties agreeing to a 14-day period to consider the offer.

"The airline remains committed to negotiating in good faith and undertakes to continue to work together with the unions to find a resolution which will constitute a reasonably meaningful response to the expectations of employees, while at the same time mindful to the need for the airline to remain operationally viable," SAA's Tlali Tlali said.

With Andiswa Maqutu

Source: Business Day