The SAA subsidiary was unable to pay full salaries in September.
South African Airways planes. Picture: Facebook.com
JOHANNESBURG – South African Airways Technical (SAAT) on Sunday said it was in discussions with labour unions to resolve salary shortages at the aircraft maintenance company.
The SAA subsidiary was unable to pay full salaries in September. This comes after a cash crunch due to the effects of the lockdown on the aviation sector as well as outstanding payments from several entities under the SAA group.
SAAT withdrew its services from South African Airways and Mango Airlines after the airlines failed to pay the maintenance company for services rendered.
With a payment agreement now reached, over 2,300 employees at the maintenance subsidiary were expected to receive full salaries.
Their pay was reduced to 25% in September instead of the 50% they were promised.
“The reason why salaries were paid in the amount of 25% to all employees was occasioned by the cash flow challenges which had visited SAA Technical. Management indicated and made a commitment to labour unions that as soon as the payment is received, then it will start making arrangements in order to pay the balance of salaries,” said SAA’s spokesperson Tladi Tladi.
SAA Technical said the airlines would now have to pay the maintenance company in advance for services on their aircraft.