South Africa: Parliament concerned over financial impact on SAA due to strike

JOHANNESBURG, The Chairperson of the Portfolio Committee on Public Enterprises in parliament said they were worried about the financial impact the ongoing South African Airways (SAA) strike would have on the company.

SAA has lost nearly 200 million rand (13.54 million U.S. dollars) since its employees downed tools on Friday.

We’re concerned about the money being lost. We’re urging all parties to resolve the issue amicably, Khaya Magaxa told Xinhua in an interview.

Workers embarked on a strike demanding an eight percent increase while SAA offers a 5.9-percent increase.

With the national carrier struggling financially, Magaxa said the strike should not be prolonged as doing so would have serious ramifications for the company’s finances.

We are mindful of the problems confronting SAA. We know of the fact that SAA continues receiving bailouts from the government and we don’t want the strike to worsen that position, he said.

The profits of the company might suffer hugely if this goes on for longer, he added.

Magaxa said the committee was also aware of the problems affecting the airline, noting that they were happening due to state capture.

Workers are not responsible for the situation at the national carrier, he said.

In October, President Cyril Ramaphosa said that the airline was engaged in talks with private partners interest in having stakes in SAA.

Source: Nam News Network