SAA Restructuring Process - Recapitalisation of the Airline and Petrol Price Hike 05-04-07

 

SAA RESTRUCTURING PROCESS - RECAPITALISATION OF THE AIRLINE AND PETROL PRICE HIKE

SATAWU welcomes the decision of the National Treasury to recapitalize SAA to the tune of R 1, 7 billion after lengthy negotiations with the Department of Public Enterprises. We believe it will assist the airline in navigating the new stand alone environment and its challenges particularly repositioning its capital outlay position.

Whilst we are not aware of the conditions associated with the amount granted we expect management to use the public funds in very strategic areas in order to develop the foundation for financial stability in the longer term. Satawu remains convinced that the airline can be turned around as it is a strategic asset within the airline industry and therefore must play a supportive developmental role in our economic and social growth.

We wish to commend government for the decision as it reaffirms a political commitment to fund state owned enterprises or parastatals where it can play a role in our economic development. Satawu in this context rejects that the neo liberal mantra which says "that all that is publicly owned and controlled is inefficient whilst on the other hand all that is privately owned and subject to the value system of the free market is efficient and profitable".

The Transnet turnaround process after the deal signed on 15 May 2006 between Transnet and Labour has proved publicly owned can be efficiently managed with skilled and passionate management team with visionary leadership with the full and meaningful involvement of labour. Satawu has written to the Portfolio Committee on Public Enterprises chairperson requesting to make a presentation on our position with regard to the turnaround process given certain concerns we continue to have and that all other stakeholders have had their say on the matter to our public representatives. Satawu has attempted to position itself as a partner in the turnaround process but management continues to undermine us in the process of consultation we repeat our caution of declaring a dispute and striking if necessary.

PETROL PRICE INCREASE - 4 APRIL 2007

With regard to the petrol increases which came into effect today, there is a need for government to urgently review its policy approach as it singularly determined by the international price of crude oil. The following is must be looked into:

1.. Petrol increases has a spiral effect across the economy and de facto increases the prices of basic goods and services like food used by the poor and already destitute in our society
2.. The different levies allocated must be reviewed as those like the trucking industry being the worst industry damaging our roads does not pay for it
3.. In 2006 there were four petrol price hikes in addition to four interest rakes hikes and the impact on the poor (both working and unemployed) have been devastating
4.. The international price of crude oil now standing at 70$ a barrel which is often escalated to such unacceptable levels due to uncertainties in the middle east region like the current British / Iran stand off and fears of demand not being met

Satawu will be calling for an urgent meeting with the Department of Mineral and Energy Affairs and the National Department of Transport to address this situation with a view to relieve the impact on the poor and consider subsidizing options as part of such a strategy. Satawu also supports COSATU 's call for subsidization to cushion the effect on the poor and the price increase as it likely not to be the last one in 2007.

Please contact the General Secretary, Randall Howard on tel: (011) 333-6127/9247 or 073 795 5044 for any further clarity.