South African Airways (SAA) interim chief financial officer, Deon Fredericks, has warned that any move by unions to disrupt the airline’s operations will heavily impede its turnaround strategy, putting all jobs at the group at risk.

Speaking at a press briefing on Tuesday (12 November), Fredericks responded to outrage from labour unions over the group’s plan to retrench around 940 workers.

The airline sent section 189 notices to unions on Monday night, announcing a restructuring strategy that could potentially affect the jobs of one fifth of SAA’s workforce (not including subsidiary businesses like Air Chefs, SAA Technical and Mango).

In response, three unions representing SAA workers said they were blindsided by the announcement, and accused the airline of using the retrenchments as a tool to hold sway over wage negotiations. They threatened to shut down the airline.

Speaking to 702, president of the National Transport Movement Mashudu Raphetha said that his union’s membership was taking a ballot on whether to embark on strike action.

He added that his union has reached out to sister organisations such as Numsa to also engage in industrial action.

“It is time now to unite and we are going to shutdown. We have been trying to engage with the company but it is not (being reasonable) and is not listening to us.

“Our doors are open and we are still open to persuasion, but if they continue like this then our members will push us to ensure that we have a total shutdown of SAA,” Raphetha said.

However, Fredericks said that SAA had complied with the law in sending out the notices, and that SAA is committed to following the retrenchment process in good faith.

He also added that unions were invited to meeting on November 11th, before the notice was sent out, however they chose not to attend.

The CFO said that the restructuring process and the wage negotiations are separate issues, dismissing unions’ claims that management was trying to threaten unions into submission.

Regarding wages, he made it clear that SAA needed to restructure and was in a financially precarious position.

“There have been nine meetings on wage negotiations since February,” he said. “At these meetings, SAA leadership made presentations to unions regarding the liquidity status, financial performance, and progress on the long-term turnaround strategy.”

“We have clearly indicated SAA’s difficult financial situation…it is our hope that the unions grasp the full extent of the financial situation we are and will work with us to find a way forward, together,” he said.

Fredericks said that it was a difficult time for all employees at the airline, but the company would work with them in good faith.

“Let me state the reality clearly,” Fredericks said. “Any interruption to our operations endangers the airline, our capacity to deliver on our strategy, and not one, but every job in SAA and related industries.”

Read: Union threatens ‘total shutdown’ of SAA over proposed job cuts