South African Airways is facing a troubled time ahead as thousands of its workers began an ‘indefinite’ strike today. Flights for today and tomorrow have been canceled, and domestic services suspended through to Monday. The airline estimates that the strike will cost it as much as $3.4m per day, and could be the beginning of the end for SAA.
SAA $3m a day strike begins
It’s the worst outcome for SAA as workers ignore the warnings of acting CEO Zuks Ramisa and press ahead with a strike. Earlier today, an estimated 3,000 workers walked out of their jobs, leaving the airline with no choice but to cancel just about all of its flights.
SAA has estimated that the strike action will cost it in the region of R50m for every day it continues. That’s around $3.4m. So far, the airline has canceled all flights for Friday and Saturday but is hoping to resume some international flights on Sunday. Domestic flights, however, have been canceled through to Monday.
iAfrica reports that ‘scores’ of passengers have been queuing for hours at Johannesburg’s OR Tambo International Airport, trying to get assistance from SAA staff. Some were re-accommodated on subsidiary airlines’ flights, but for many, there was no way for them to continue their journey.
The strike will last ‘indefinitely’
The strike is being led by the National Union of Metalworkers of South Africa (NUMSA) and the South African Cabin Crew Association (SACCA). These unions together represent some 3,000 of SAA’s 5,000 strong workforces.
Union concerns stem from perceived poor wages at the carrier. According to previous reports, SAA has offered a 5.9% wage increase, but unions are calling for at least 8%. The situation came to a head this week when plans were revealed that SAA was considering firing around 900 of its staff in a move to cut costs at the failing airline.
The airline has been willing to talk. Reuters reports that meetings were held on Thursday, including a revised wage offer, but that the unions rejected it and pressed ahead with the strike. Now, the unions are saying that the strike will be ‘indefinite’, until management gives in. NUMSA spokeswoman Phakamile Hlubi-Majola told Reuters,
"The strike is an indefinite strike until management gives in to our demands."
SACCA concurs, with its president Zazi Nsibanyoni-Mugambi saying,
"They really need to get serious, 5.9% simply won't cut it,"
Previously, acting CEO Zuks Ramisa had warned that the strike would only exacerbate the problems at the airline. Since 2012, more than $2bn of taxpayers' money has been poured into SAA to try and keep it afloat. Right now, the airline is in the midst of negotiating further funding from banks and is worried this industrial action could jeopardize the talks.
40,000 passengers affected
The airline’s mass flight cancellation has been estimated to have impacted the travel plans of some 40,000 passengers. Philip Saunders, SAA’s chief commercial officer, told the Independent,
“Passengers are advised to follow our re-accommodation travel policy to exercise their rights when flights are canceled. Customers are requested not to travel to their departure airports unless in possession of a rebooked itinerary.
“SAA continues to spare no effort to find solutions that accommodate the employee demands, safeguard the business and return operations to normal.”
Some flights were, however, maintained. These were just a handful of Friday’s international departures, including Frankfurt, Heathrow, and Munich. SAA is hoping to reinstate these flagship routes from Sunday, but passengers are warned to check ahead before journeying to the airport.