The SAA subsidiary was not able to make the payment of salaries in September
On Sunday, South African Airways Techincal (SAAT) mentioned that it was in talks with labour unions, in order to clear salary shortages at the aircraft maintenance company.
The SAA subsidiary was not able to make the payment of salaries in September. This is following a severe shortage of money as a result of the lockdown on the aviation sector and also due to outstanding payments from different institutions under the SAA group.
SAAT stopped offering its services to South African Airways and Mango Airlines after they both failed to make the payment to the maintenance company for the services they rendered to them.
More than 2,300 employees at the maintenance subsidiary will been expecting to receive their salaries after a payment agreement have now been met.
In September, their payment was reduced to 25% in place of the 50% they were initially 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 mentioned that the airlines would have to still make their payment in advance to the maintenance company for the services rendered on their aircraft.
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