Online Reporter
SOUTH African Airways (SAA) says there have been minimal flight disruptions on Wednesday morning despite pilots’ “work-to-rule” industrial action.
This follows a decision by employees affiliated with the SAA Pilots Association and the National Transport Movement Pilot Forum to go on strike due to an impasse in a wage dispute.
“South African Airways deeply regrets the industrial action taken amidst ongoing negotiations over salaries, benefits and work conditions since May 2024,” says Vimla Maistry, SAA Lead Group Corporate Affairs to Moneyweb.
Discussions began in May 2024, with pilots initially demanding a 30 percent salary increase, which was later reduced to 15,7 percent.
In November 2024, SAA implemented a 7,2 percent average salary increase and increased the medical aid subsidy from R2 275 to R4 000 monthly.
This was rejected, leading to a pilot strike on 5 December 2024.
Moneyweb reported that SAA cancelled about 60 percent of its flights after most of its pilots went on strike over pay. The carrier’s chief said the airline wouldn’t be able to handle more disruptions to its nascent financial recovery. In December, a compromise agreement was reached during the strike that included a 1 percent increase in the total cost of employment effective 1 December 2024 and a daily domestic allowance of R200 for all flight deck crew, among other things.
However, a final offer still had to be made. SAA’s final offer includes a 7,66 percent total cost of employment increase from 1 April, followed by 3 percent annual increases in 2025 and 2026, and a further 3 percent plus inflation-linked adjustments in 2027.
“We consider our offer to the pilots both fair and generous, especially given the financial challenges the airline continues to face. SAA remains dedicated to reaching an amicable resolution through ongoing negotiations and open communication with the pilot body and all stakeholders,” says SAA Group CEO, Prof John Lamola. – Moneyweb
Lamola was recently appointed to this role for a two-year term, a decision that sparked controversy because he was the board’s third pick.
The state-owned entity says it is still managing substantial financial challenges while operating in a tough environment with high fuel prices, a weakened rand, strong competition, and persistent productivity and labour costs issues.
In its November results, SAA reported a net profit of R252 million for the year ending March 2023, up from a loss of R3.65 billion a year earlier.
“Our top priority at SAA is ensuring minimal disruption to our customer’s travel plans and protecting the operations of our travel and business partners. The airline confirms that all morning flights on 19 March departed with minimal disruption.
SAA remains committed to resolving this matter promptly and bringing pilots back to work at full capacity as soon as possible, says Maistry. Moneyweb
