SAA Technical staff go home with full pay, but Mango not that lucky

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SAAT is already undergoing a retrenchment process in terms of Labour law, while this is not the case at Mango.
SAAT is already undergoing a retrenchment process in terms of Labour law, while this is not the case at Mango.

Employees of low-cost state-owned airline Mango did not get salary payments for June – but fellow SAA subsidiary SAA Technical managed to pay up full salaries for the month.

Asked about the disparity, the Department of Public Enterprises (DPE) and SAA itself were unable to comment.

An industry insider who wants to remain anonymous said SAAT had managed to obtain bridge funding for salaries for May and June. The source was unclear.

SAAT is, however, undergoing a retrenchment process. This is not the case at Mango.

Fin24 reported last week that for months, Mango's staff have had either partial or late salary payments as the airline struggles for survival.

The SAA board is not allowing Mango to open ticket sales longer in advance. This means flights end up with very low passenger load factors, impacting the funds that can be raised to pay salaries.

It is still unclear when the process to approve a Special Appropriation Bill, which will provide a lifeline for the airline, will finally be completed. The Special Appropriation Bill will enable the transfer of R2.7 billion to SAA's subsidiaries from R10.5 billion originally allocated in the mini-budget last year to implement SAA's business rescue plan.

Unlike SAA, its subsidiaries Mango, SAA Technical and Air Chefs, did not go into business rescue. 

The bill was recently adopted in the National Assembly. It proposes R1.663 billion for SAA Technical, R819 million for Mango and R218 million for Air Chefs.

Mango's management is still trying to see if salary payments can be made by the end of the month, according to an employee who wants to remain anonymous.

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