- South African Airways is reportedly offering staff very generous severance packages
- The state-owned entity is set to spend R2.2 billion offering an average of R580 000 to each employee
- This comes as companies are looking at only receiving a fraction of the R11 billion debt SAA owes them
PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!
SAA staff have been offered an average of R580 000 each in severance packages that are set to cost the airline R2.2 billion.
With the state-owned entity owing companies R11 billion in total, businesses will be lucky to receive 7.5 cents on every rand owed to them. Some creditors may not have any chance of receiving anything.
The generous severance packages need to be accepted as part of the SAA's rescue plan. The state wants to shed around 3 700 employees from the airline's bloated workforce before it agrees to provide further help.
READ ALSO: ANC distances itself from cadre deployment memo, says document is fake
While experts have dubbed the packages excessive and unaffordable, some unions are calling for more funds.
City Press reports that it has seen a confidential letter detailing what SAA employees have been offered:
- A severance package equivalent to one week’s salary for every year of service;
- Salary for a notice month;
- A payout for any accumulated, untaken leave;
- A pro rata 13th cheque;
- Supplementary payment to bring the above amount up to R200 000 if it is less than this amount;
- Packages calculated on the basis of a salary increase of 5.9%, backdated to 1 April this year;
- Back-pay due as a result of the 5.9% salary increase up to 13 July; and,
- Incentives of R100 000 for employees whose total cost of employment is less than R450 000 per year, R75 000 for those who earn between R451 000 and R550 000 per year, and R50 000 for those who earn between R551 000 and R750 000.
With staff earning far higher salaries than the industry standard, many feel that the excessive staff force was a major part of the bankrupt company's downfall.
Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!