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Johannesburg - South African Airways (SAA) and its pilots have reached salary and restructuring agreements that will facilitate greater labour stability and assist the airline with its return to sustainable profitability.
"Our pilots are respected worldwide for their outstanding training and professionalism. We are proud of them and they have come to the party to help ensure that the airline achieves profitability on a sustainable basis," says Khaya Ngqula, SAA CEO.
The airline and the pilots union, the South African Airways Pilots Association (SAAPA), this week agreed to a three year salary agreement, as well as a restructuring agreement. This follows a multi-year wage agreement reached earlier this month with trade unions representing cabin crew and ground staff, SATAWU and UASA (AIWU).
"Reaching an agreement with our pilots will assist us immensely with our plans to expand our fleet and to explore opportunities for growth. With their support we are set to take on challenges well beyond 2010. We can now as a team focus on consolidating the airline's restructuring programme, as
well as growing the business," says Ngqula.
Key aspects of the three year salary agreement:
- For the financial year 2007/08 no increases will be applied to the current salary scales.
- For 2008/09 and 2009/10, a local market movement formula for salary increases will apply. To determine the local market movement for South Africa, a study will be done to benchmark salary increases in comparable companies and job categories.
- The Maintenance of Parity (MOP) agreement is suspended for three years from 1 April 2007, ending 31 March 2010 and temporarily replaced by the three year salary agreement. Within the next year the parties will negotiate a new agreement.
According to the restructuring agreement, SAAPA has agreed to certain concessions as part of the airline's deep and fundamental restructuring process which will amount to a total saving of 150-million rand (including the wage freeze).
Key aspects of the restructuring agreement:
- The overtime rate for pilots will be reduced from 1.5 times the hourly rate to 1.25 times.
- Pilots productivity to be improved by 5%.
- Sick leave will be reduced.
- Adjustment to uniform allocation to achieve savings of about R1000 per pilot.
- Other savings related to administration and rostering have been achieved.
- I-Net Bridge