A Peculiar Victory For Department Of Public Enterprises As SAA Workers, Except Pilots, Accept Severance Pay

THEBE MABANGA  

PUBLIC Enterprises ministry has announced that South African Airways employees, except pilots, have accepted in principle at least the department’s offer of as severance package to make way for the creation of a new airline.

But this is, at best, a peculiar victory for the Department and the matter is far from settled.

The packages offer a week’s pay for every year of service, leave and notice pay, 13^th cheque and top up to ensure it is not below R200 000.

It will cost R2.3 billion or almost 10% of the mooted R26 billion required to set up a new airline which the department must secure form the fiscus and private funders by next Wednesday.

The package is dependent on a vote by 75% of creditors on a Business Rescue Plan published on Wednesday to be voted on next Tuesday.

This is after the last vote was