Labour court to decide on SAA retrenchment application on Friday

This submission was made by Andrew Redding SC, counsel for the airline and the two business rescue practitioners, on Thursday.

The business rescue practitioners and the airline are opposing the application by the National Union of Metalworkers of SA and the SA Cabin Crew Association, which want the labour court in Johannesburg to declare the purported retrenchment of employees null and void. The unions went to court because they believe the announcement by the practitioners last week meant that they did not want to embark on the retrenchment processes set out in section 189 of the Labour Relations Act.

The section permits employers to dismiss employees for operational requirements. However, it requires that consultation must take place when the employer contemplates retrenchments. The consultations must try to reach consensus on a number of matters, including the possibility of avoiding the dismissals, measures to minimise the dismissals and appropriate measures to mitigate the effects of retrenchments.

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