South African Airways Commits to Resolving Pilots Pay Dispute

After protracted wage negotiations, South African Airways (SAA) has received a notification from the SAA Pilots Association (SAAPA) expressing their intent to embark on a strike action commencing 5 December 2024.

The SAA management is doing everything possible to avoid a strike by pilots, or any disruptions to SAA operations, especially during the December peak season.

SAAPA’s initial demand (tabled in May 2024) was for a 30% increase in pilot salaries, subsequently reduced to 15.7% (plus associated benefits). SAA has offered salary increases of 8.46% (backdated to 1 April 2024).

SAA's final wage offer, made to SAAPA on 24 September 2024, is significantly higher than the general salary increases in South Africa in 2024, is benchmarked against international pilot salary adjustments, and is in line with what was granted to the rest of SAA staff members in June 2024.

The offer to the pilots reflects the airline's commitment to the well-being of its employees within the context of the airline's history, current turnaround programme, and future financial sustainability.

Interim Chief Executive Officer Professor John Lamola says while SAA recently reported a modest profit, the airline may not by any means claim to be in a financially robust position. Moreover, he adds, SAA can no longer expect shareholder contributions or recapitalisation from the fiscus.

“Ironically, the pilots have chosen to go on strike exactly on the fifth anniversary of the day SAA was placed in Business Rescue in 2019. SAA cannot return to the lucrative benefits that SAA pilots have historically enjoyed. Acceding to SAAPA current demand for a 15.7% wage increase will trigger SAA’s decline into bankruptcy”, he says.

“SAA has only recently regained its operational viability after emerging from business rescue in 2021. In order not to disrupt this momentum, we are committed to ongoing negotiations with SAAPA and to do everything possible to reach a fair settlement that is mutually beneficial to both the pilots and the company”.

Professor Lamola adds that the team at SAA will ensure that customers, the global travel trade, and all stakeholders are kept fully informed of developments. The airline is implementing contingency measures to ensure that disruption to its services will be as minimal as possible.