Trade union Solidarity served court papers on embattled State-owned airline South African Airways (SAA) and on the Ministers of Finance and Public Enterprises on Thursday. The union has asked the court to put SAA into business rescue. If granted, it would mean the appointment of a business rescue practitioner, who would have extensive powers to save the airline, or at least parts of it.
Under the Companies Act, Solidarity pointed out, State-owned companies could be placed in business rescue (although this has never yet been done). The Act also allows trade unions to bring such applications to the courts.
“We are profoundly aware of the crisis SAA finds itself in,” stated Solidarity CEO Dirk Hermann. “SAA is heading for liquidation which will have huge consequences for employees, the South African economy and for taxpayers. In all, 11 000 workers will lose their jobs and a debt burden of billions of rands will have to be absorbed by the Treasury if there is no radical intervention.”
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