Gunship
1st Feb 2005, 18:41
Plans to trim back the number of South African Airways' (SAA's) costly managers, by offering severance packages, announced last week by CEO Khaya Ngqula, mark the last chance for the company's survival.
This is the view of Gerhard Ueckermann, senior sectoral manager of the transport workers' sector of the United Association of South Africa (UASA).
SAA suffered heavily during the 2003/2004 financial year from a R6bn hedging loss, when the government had to issue a R3.5bn guarantee to lenders.
Ueckermann said in a statement on Tuesday that should Ngqula not succeed in turning around SAA and making the airline profitable, it could mean the end of the company.
"He will have to avoid a shotgun approach at all costs and do things right the first time and for the right reasons."
The statement said that UASA, the largest representative union of ground and cabin crew at SAA fully supported Ngqula, provided his strategies were sustainable and feasible.
Ueckermann recalled that the airline had undergone similar downsizing in the past.
"A similar process was attempted in 2001 under the leadership of Andre Viljoen, but to little avail.
How long will Ngqula last?
"In fact, it was a disastrous failure because only 91 managers opted for severance packages, which still left the company with 300 managers."
He noted that large numbers of managers had since been appointed again, resulting in a current total of around 600.
"The only criteria in terms of which managers should be retained, must be based on relevant skills that can make SAA succeed."
Ueckermann said SAA also needed to eliminate internal politics and power games that created insecurity and low morale.
"Workers want managers with leadership and vision to restore SA Airways and on whom they can rely."
He said Ngqula's next step, after rationalisation, posed the big question about the airline's future.
"Will he persevere with his plans, or will his feet, too, be cast in concrete like those of many of his predecessors, severely limiting him in doing everything that is necessary to save the airline?
"How long will Ngqula stay to witness the implementation of his plans, or will SAA change horses again in midstream?"
This is the view of Gerhard Ueckermann, senior sectoral manager of the transport workers' sector of the United Association of South Africa (UASA).
SAA suffered heavily during the 2003/2004 financial year from a R6bn hedging loss, when the government had to issue a R3.5bn guarantee to lenders.
Ueckermann said in a statement on Tuesday that should Ngqula not succeed in turning around SAA and making the airline profitable, it could mean the end of the company.
"He will have to avoid a shotgun approach at all costs and do things right the first time and for the right reasons."
The statement said that UASA, the largest representative union of ground and cabin crew at SAA fully supported Ngqula, provided his strategies were sustainable and feasible.
Ueckermann recalled that the airline had undergone similar downsizing in the past.
"A similar process was attempted in 2001 under the leadership of Andre Viljoen, but to little avail.
How long will Ngqula last?
"In fact, it was a disastrous failure because only 91 managers opted for severance packages, which still left the company with 300 managers."
He noted that large numbers of managers had since been appointed again, resulting in a current total of around 600.
"The only criteria in terms of which managers should be retained, must be based on relevant skills that can make SAA succeed."
Ueckermann said SAA also needed to eliminate internal politics and power games that created insecurity and low morale.
"Workers want managers with leadership and vision to restore SA Airways and on whom they can rely."
He said Ngqula's next step, after rationalisation, posed the big question about the airline's future.
"Will he persevere with his plans, or will his feet, too, be cast in concrete like those of many of his predecessors, severely limiting him in doing everything that is necessary to save the airline?
"How long will Ngqula stay to witness the implementation of his plans, or will SAA change horses again in midstream?"