- The Labour Appeal Court has ruled on whether it was unfair of the BRPs to propose retrenchments in the absence of a business rescue plan.
- The court has upheld a May judgment.
- Analysts have previously said this could have far-reaching implications.
The Labour Appeal Court has handed down a key ruling affecting proposed retrenchments at South African Airways, dismissing an appeal by the business rescue practitioners.
The rescue practitioners had appealed an earlier finding by the Labour Court that ruled in favour of the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) that the BRPs could not start retrenchments at the airline without first submitting a business rescue proposal.
The practitioners had turned to the Labour Appeal Court. Their appeal was heard late in June and judgment was reserved.
In a ruling handed down on Thursday, Judge Violet Phatsoane dismissed the appeal, but made no order regarding the costs.
- READ | Labour Court battle between SAA rescue practitioners and unions about more than airline’s future
The BRPs have previously raised concerns that waiting for the business rescue plan to be approved before beginning a consultation process for retrenchments could place the airline at greater risk of liquidation. Analysts have, in turn, told Fin24 that placing a moratorium on retrenchments before the adoption of a business rescue plan could have far-reaching implications not just at SAA, but for the business rescue process more broadly.
On Thursday, BRPs said the judgment was being studied and the company’s position considered.
