South African Airways workers start strike that could cripple airline

A union member pickets SAA Airways after two unions said their workers would go on strike over expected job cuts. (Reuters)
Updated 15 November 2019

South African Airways workers start strike that could cripple airline

  • Dispute over job cuts leaves South African state carrier’s future under a cloud

JOHANNESBURG: Workers at South African Airways (SAA) downed tools on Friday to demand higher wages and protest planned job cuts in a strike that has forced the troubled state-owned carrier to cancel all flights and left its future hanging in the balance.

SAA, which has not turned a profit since 2011 and is without a permanent CEO, says the strike by unions representing more than half of its workforce will cost it 50 million rand ($3.36 million) per day and threatens its survival.

The unions rejected SAA’s revised wage offer late on Thursday, and are also striking over the carrier’s plans to cut more than 900 jobs in a bid to stem financial losses and end a reliance on state bailouts.

SAA’s acting chief financial officer, Deon Fredericks, told the eNCA news channel that the airline, hurt by past mismanagement, could not just close its eyes and carry on.

“We’ll just go deeper down,” he said.

SAA is currently trying to negotiate funding from banks it needs to stay afloat. Fredericks said the airline would not survive without the money, and the financial impact of the strike could jeopardize the talks.

The National Union of Metal Workers of South Africa (NUMSA) and the South African Cabin Crew Association (SACCA) called the SAA strike from 2 a.m. on Friday. The unions said the strike will continue until their demands, including an 8 percent wage increase and job security, are met.

NUMSA spokeswoman Phakamile Hlubi-Majola said the unions did not believe management’s warnings of possible collapse, and the airline’s problems were a result of their repeated failures.

SAA has also canceled flights on Saturday.

While some passengers told Reuters the airline had made alternative arrangements for their travel, others were left unsure how they would get to their destinations.

Vicky Mojela, 26, had been due to catch a flight to Uganda to attend wedding celebrations. She was told there were no direct or connecting flights.

“I’m disappointed,” she said. “I just hope it doesn’t happen again.”

At SAA headquarters near OR Tambo international airport in Johannesburg, hundreds of workers gathered on Friday singing protest songs and holding placards reading “Flights are full, where is the money?” and “We are not fools.”

Cabin crew member Olwetu Mrwetyane, 36, said her 11 years at SAA have been marked by job insecurity.

“Even now we don’t know if we’re going to have a job,” the mother of two said, adding she would be left destitute if she was laid off.

SAA’s problems highlight the scale of the challenge facing President Cyril Ramaphosa, who has staked his reputation on turning around a number of ailing state-run firms that threaten growth in already stagnant economy.

Many have been left in dire financial straits after years of mismanagement and poor governance, and need to restructure. But job cuts are a hugely sensitive issue in South Africa where the unemployment rate is close to 30 percent.


China's aviation regulator raised concerns with Boeing on 737 MAX design changes

Updated 12 December 2019

China's aviation regulator raised concerns with Boeing on 737 MAX design changes

  • China is reviewing the airworthiness of the plane
  • China was first country to ground plane in March

BEIJING: China’s aviation regulator raised “important concerns” with Boeing Co. on the reliability and security of design changes to the grounded 737 MAX, it said on Thursday, but declined to comment on when the plane might fly again in China.
China is reviewing the airworthiness of the plane based on proposed changes to software and flight control systems according to a bilateral agreement with the United States, Civil Aviation Administration of China (CAAC) spokesman Liu Luxu told reporters at a monthly briefing.
He reiterated that for the plane to resume flights in China, it needed to be re-certified, pilots needed comprehensive and effective training to restore confidence in the model and the causes of two crashes that killed 346 people needed to be investigated with effective measures put in place to prevent another one.
China was the first country to ground the 737 MAX after the second crash in Ethiopia in March and had set up a task force to review design changes to the aircraft that Boeing had submitted.
The US Federal Aviation Administration (FAA) will not allow the 737 MAX to resume flying before the end of 2019, its chief, Steve Dickson, said on Wednesday.
Once the FAA approves the reintroduction into service, the 737 MAX can operate in the United States, but individual regulators could keep the planes grounded in other countries until they complete their own reviews.
“Due to the trade war, the jury is still out on when China would reintroduce the aircraft,” said Rob Morris, Global Head of Consultancy at Ascend by Cirium.
Chinese airlines had 97 737 MAX jets in operation before the global grounding, the most of any country, according to Cirium Fleets Analyzer.