Mango unions accuse SAA of blackmail

The aviation industry in South Africa faces yet another crisis as trade unions representing Mango, the low-cost airline, have accused parent company SAA of withholding workers' salaries as a form of blackmail. The unions claim that SAA is using this tactic to pressure them into withdrawing a court application to place Mango in business rescue, a move that has been recommended by both SAA and Mango boards. Zazi Nsibanyoni-Mugambi, President of the South African Cabin Crew Association, spoke out about this issue in a recent interview with CNBC Africa. According to Nsibanyoni-Mugambi, Mango employees have not been paid since May 30th, with some workers having up to eight months of outstanding salaries. The situation has left employees in a precarious position, as they grapple with financial insecurity amidst the ongoing crisis. The unions believe that SAA's actions are part of a larger scheme to wind down Mango and make way for a competing low-cost carrier, Lift, which is owned by a consortium that has been named as SAA's new equity stakeholder. Nsibanyoni-Mugambi expressed concerns about the lack of transparency and communication from the shareholder, questioning their motives and highlighting the need for a business rescue process to save Mango from potential liquidation. Despite the challenges faced by Mango employees, Nsibanyoni-Mugambi pointed out that the current COVID-19 relief schemes have not been accessible to aviation workers in the latest round. This has added to the financial strain on employees who are already struggling due to the salary delays. The union president further raised suspicions about SAA's intentions, citing a letter from the Department of Public Enterprises (DPE) that indicated a preference for winding down Mango. This, combined with the emergence of Lift as a new player in the market, led the unions to believe that SAA is pushing for Mango's closure to make room for its competitor. When asked about the possibility of Mango employees transitioning to Lift in the event of Mango's closure, Nsibanyoni-Mugambi emphasized the need for collaboration and consensus-building. However, she noted that the lack of engagement from the DPE and SAA has made it challenging to explore such options, leaving employees unsure about their future. As Mango prepares to appear in court for the business rescue application, the unions are hopeful that the process will lead to a positive outcome for the airline. They have expressed a desire for an impartial business rescue practitioner who will prioritize the company's interests and ensure its survival in the face of mounting challenges. The standoff between Mango unions and SAA highlights the deepening crisis in the South African aviation sector, with employees caught in the crossfire of corporate interests and industry dynamics. The outcome of the court proceedings will have far-reaching implications for the future of Mango and its workforce.