/ 22 May 2008

SAA, pilots ink wage deal

South African Airways and its pilots have reached a three-year salary and restructuring agreement, the airline announced on Thursday.

The agreements would facilitate greater labour stability and assist the airline with its return to sustainable profitability, CEO Khaya Ngqula said.

”We are proud of our pilots as they have come to the party to help ensure that the airline achieves profitability on a sustainable basis,” said Ngqula.

The three-year agreement states that no increment will be paid for the 2007/2008 financial year.

However, for the period from 2008 to 2010, a local market movement for salary increases would apply.

”To determine the local market movement, a study will be done to benchmark salary increases in comparable companies and job categories,” he said.

The maintenance of parity — which meant the equitable treatment of SAA pilots in accordance with international best practices — was temporarily replaced by the three-year salary agreement.

”Overtime rate for pilots have been reduced from a 1,5 to 1,25 hourly rate. Pilots’ productivity is expected to be improved by 5% and sick leave will also be reduced,” said Ngqula.

He said the adjustment to uniform allocation is expected to achieve savings of about R1 000 per pilot. – Sapa