South African Airways today extended the deadline for its management clean-up programme that kicked-off on October 22. The management clean-up programme had two phases, the first, where staff were offered a voluntary severance package ended on November 15th, with the programme for compulsory severance agreements ending November 30th. This date has now been extended to December 15 to give employees more time for consultation, and to show the company`s commitment to fairness, equity and transparency. The management clean-up forms part of a series of cost-cutting measures, that Andre Viljoen, SAA President and CEO announced in October.
“After September 11 airline values across the world have been decimated by up to 60 %. There is a possibility of many of them going insolvent. There have been worldwide layoffs totalling up to 200 000,” said Viljoen.
“Between May 1999 and October 2001, SAA management structure jumped from 480 to 668 -a 39% increase. For us to survive, we have to streamline the management structure, eliminate duplication and non-value adding functions, including the reinforcement of accountability and responsibility.
“To achieve that, we have to reduce our management numbers by between 20 to 30 percent. In all of these the Labour Relations Act will be followed to the letter,” said Viljoen.
Issued by SAA Corporate Communications