The Labour Appeal Court has reserved judgment after hearing arguments on behalf of the National Union of Metalworkers (Numsa) and the SA Cabin Crew Association (Sacca) to have the SAA settlement agreement declared unlawful or unfair, notes a Moneyweb report.

If Numsa and Sacca’s application is granted, it could throw a spanner in the works of the airline’s rescue process, the Public Enterprises Department argued, adding that the airline could also be held liable for the payment of salaries out of the business rescue post-commencement financing.

The airline has been in business rescue since December 2019 and has not been operating since April.

Prior to the signing of the settlement agreement, workers had been without pay since April last year, barring UIF Covid-19 Temporary Employer-Employee Relief Scheme (Ters) payments.

Advocate Andrew Redding, for the rescue practitioners, argued that the funding provided to the airline in November by the government was provided with strict conditions, including that workers would agree to a compromise which would see them forego some funds owed to them.

Minnar Niehaus for the trade unions, argued that the department as the shareholder cannot unilaterally decide to change the conditions of the airline’s business rescue plan which was agreed to by creditors in July last year.

The two unions also want the court to compel SAA rescue practitioners, Siviwe Dongwnana and Les Matuson, and the department to pay their members a lump sum comprising an agreed-to 5.9% increase backdated to April 2020, as well as an equivalent pro-rata contribution towards a 13th cheque.

Numsa and Sacca want these payments to be made within seven days.

Full Moneyweb report