LETTER: Strike will be death knell for SAA

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South Africa Headlines News

Unions are incapable of comprehending that the national airline has no money

Pravin Gordhan. Picture: FREDDY MAVUNDA

Public enterprises minister Pravin Gordhan has told striking SAA unions that there “is no money” to meet their demand for a pay increase.he unions are intellectually incapable of comprehending this, nor the reasons for his refusal. Too many former executives, as well as acting CEO Zuks Ramasia, have obfuscated the truth about the airline’s financial health. She said recently the airline was on the road to recovery after resuming flights to six African cities. This is far removed from reality.

The acting CEO’s grasp of economics seems tenuous. SAA is bankrupt, and trading in insolvent circumstances. Moreover, it has received such bad publicity that it is doubtful whether it will be able to fill seats in future. Gordhan’s refusal to capitulate to union demands means the strike will continue. There is little doubt that this will be the death knell for SAA. It will also be the beginning of the end for the unions, which will pay the price for serving the interests of their leaders rather than members.

 

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