Posts tagged with 'salaries'

 

SAA crisis becomes ANC nightmare – No banking institution wants to borrow R2 billion for bankrupt government-controlled entity

Posted on Leave a comment

The competition to get SAA free will now begin, which the weakest state-controlled entity now has literally no value.

The government’s inability to live up to its promise and make another R2 billion available to SAA as the largest rescue buoy has now made the entity very shaky.

Salaries for January can still be paid, but after that it will struggle, and in the meantime Minister Tito Mboweni is trying to convince all the bankers in the country to borrow the R2 billion.

Approximately 12 flight routes were abolished, destroying thousands of people’s travel plans and those who were prepared had to be content to get on with Mango Shipping.

A week of complete chaos is over, but the outlook for this week is as bleak as it was last week.

According to press reports, it appears that many ANC members of parliament are in favor of liquidating the SAA to lighten the load on the state coffers.

Now, a new shipping company is co
Continue reading…

Enjoyed this post? Share it!

 
 

SAA’s wings cut – bankrupt SOE can only pay salaries in January

Posted on Leave a comment

The bankrupt, state-owned SAA airline company will manage to pay its staff salaries for January, but that’s where it all ends.

With a bankrupt government failing to fulfill its pledge to pump another R2bn into the soe, it looks as if SAL will not remain standing.

The airfreight company faces three serious problems, and the solutions to this are vague and unclear, as different measures could not create a better situation.

The SAA needs at least R2bn to get its planes up, but with the many cancellations it has had to announce, its passengers are becoming less and less and profitability is becoming almost impossible.

The government’s inability to borrow R2 billion from any banker in the country has failed, which is now seen as a vote of no confidence in the financial approaches the regime is following.

It can inflict a final blow.

The large number of workers who should never have been hired is another reason why the
Continue reading…

Enjoyed this post? Share it!

 
 

Pravin Gordhan says cash-strapped SAA may have no money for salaries this month

Posted on Leave a comment

Minister of Public Enterprises Pravin Gordhan has warned that, while two unions at SAA are demanding salary increases for members, the airline might not even be able to pay any salaries at the end of the month.

The minister was speaking at a Parliamentary briefing on Wednesday. The meeting was called for feedback on power utility Eskom, but Gordhan – who met with unions on Tuesday – also made some remarks about SA’s cash-strapped national airline.

The minister said the strike was worsening the airline’s financial crisis. “SAA doesn’t have enough cash to possibly even pay salaries at the end of the month,” he said. “Not only will people not get increases but they might not even get their salaries,” he added.

Members of the National Union of Metalworkers of SA and the SA Cabin Crew Association have been on strike since Friday over wages, proposed job cuts and the demand that more workers
Continue reading…

Enjoyed this post? Share it!