FlySafair strike worsens with more flight cancellations expected
The dispute is centred around a wage increase, but also working conditions and hours.
The strike caused major disruptions across and delays across South Africa on Monday, with many people expecting to travel home at the conclusion of the winter school holidays.
Speaking to Stephen Grootes on The Money Show, aviation expert Guy Leitch believes it's likely to be a protracted strike action.
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IOL News
a day ago
- IOL News
FlySafair, Solidarity union head back to negotiating table after ‘some progress made'
FlySafair has made schedule changes affecting flights from July 22 to 28. Image: Supplied The mediation process between FlySafair and Solidarity, the labour union representing the carrier's striking pilots, is set to resume on Friday afternoon. 'We have reached a sensitive stage in the discussions and some progress has been made. Parties will reconvene on Friday at 2pm, to continue discussions,' a source at Solidarity told IOL. The strike and lockout conditions remain the same since talks began on Wednesday, the source added, and in the interim, parties have agreed to a media blackout to 'ensure the integrity of the process'. A FlySafair spokesperson told IOL that the airline continues to run a stable, reduced timetable and remains engaged in mediation with Solidarity and the Commission for Conciliation, Mediation and Arbitration (CCMA). The airline has reportedly entered into an agreement with South African Airways (SAA) to operate two of its daily flights under a 'passenger protection agreement'. However, there are fears that flight cancellations could be necessary next week if the strike is not resolved. That's because the pilots who are currently operating FlySafair's reduced schedule could reach their legal flying time limit by then, The Citizen reports. These regulations, designed to prevent fatigue, state that pilots cannot fly for more than 40 hours within a seven-day period. According to Solidarity, the strike was initially meant to last for one day (Monday), in order to get FlySafair to the negotiating table. But it said the airline then responded by locking out the pilots for seven days. Solidarity member pilots are demanding a 10.5% increase for 2025/26, with pilots claiming they're still earning 10% less than pre-pandemic levels. However, FlySafair says that this would amount to a cost-to-company increase of more than 20% once additional demands had been factored in, which it says is an unsustainable escalation for any company. The airline has offered its pilots an 'above inflation' increase of 5.7%. Next Stay Close ✕ FlySafair maintains that its pilots are among the best-compensated professionals in South Africa, with captains earning between R1.8 million and R2.3 million per year. However, the pilot roster system is a significant point of contention for pilots. ALSO READ: Why FlySafair pilots are striking - it's more than just money In a statement released earlier this week, Solidarity claimed that FlySafair's new rostering system drastically changed the established working conditions of pilots, impeding their rest periods and undermining their family life. 'As pilots' workdays often start before sunrise and last until late at night, sufficient rest is of utmost importance for the safety and well-being of pilots and passengers alike. 'In addition, pilots work seven days a week on a rotating schedule, which significantly impacts their family life compared to those who work standard office hours,' Solidarity said. Responding to earlier accusations that pilots were overworked, FlySafair said its captains spent an average of 63 hours in the cockpit last month, which is well within regulatory limits set by the Civil Aviation Authority, IATA and ICAO, which cap flight duty at 100 hours per month. This is a developing story. Stay tuned to IOL for further updates. IOL News
The Citizen
2 days ago
- The Citizen
How FlySafair echoes the Argus foreign investment failure
As profits head to Ireland and workers protest, the Safair saga reveals hard truths about foreign investment. The Western capitalist fan club forever warns that this or that transgression will deter foreign investment… and the government in particular is expected not to annoy the Godlike 'foreign investor'. But, as in the fable of The Emperor has no clothes, few people look beyond the rhetoric to point out that, on occasions, the foreign investment emperor's raiments are, at the least, looking a bit threadbare. A case in point was the acquisition, back in the mid1990s, of the then Argus newspaper company in South Africa by Tony O'Reilly's Independent group from Ireland. The SA company was bought at better than a firesale price – because the Irish company used the then 'financial rand' mechanism and there was general fear about the future of a newly democratic South Africa. By the time the company was sold to Iqbal Survé in 2014, it had funnelled billions of rands back to Ireland, in profits – many times what was paid for the company. ALSO READ: FlySafair under fire for offshore payouts amid staff wage freezes But, this foreign investment also cost two-thirds of the employees of the Argus company their jobs, as the Irish applied swingeing cost-cutting. That little exercise in foreign investment was actually a bottom-line loss to South Africa, in terms of precious foreign exchange and something over 2 000 jobs. We are wondering if there is not a similar – also Irish-linked – phenomenon under way at the moment with Safair, the company which operates low-cost carrier FlySafair. As some of its pilots continue their strike for better conditions and pay, it has been revealed that the company transferred more than R1.3 billion to its shareholders in Ireland in the past three years. As the money funnel was opened, the airline told the world it was financially strapped and employees that there wasn't enough money for decent increases. ALSO READ: Rostering issue at heart of pilot strike, says Solidarity Mind you, business doesn't have a conscience, does it?
The Citizen
2 days ago
- The Citizen
FlySafair under fire for offshore payouts amid staff wage freezes
Audited records reveal FlySafair transferred millions abroad while denying workers cost-of-living increases. Amid a pilot strike due to protracted wage negotiations and along with domestic and international licensing compliance deadlines, it is now alleged FlySafair, South Africa's only budget air carrier, transferred substantial cash to its shareholders in Ireland. A source said more than R1.31 billion was transferred abroad at the tail-end of the Covid pandemic, during a time when FlySafair reportedly told employees it could not afford basic cost-of-living salary increases. The allegations are supported by the audited financial statements of Safair Aviation (Ireland) DAC, a holding company with no employees and minimal expenses, which reports to parent company ASL Aviation Holdings. FlySafair reportedly transferred over R1.3bn offshore According to the statements, Safair Aviation (Ireland) DAC received $54.5 million (about R956 million) in 2022, and a further $20.3 million in early 2023, from its South African subsidiary, Safair Holdings (Pty) Limited – the parent company of FlySafair. In total, over $74.8 million was transferred abroad in just over a year. FlySafair did not respond to requests for financial data covering earlier or later periods. ALSO READ: FlySafair cancels more than 20 flights, offers refunds as pilots' strike continues [VIDEO] 'This is not just executive hypocrisy; it is a textbook case of pandemic profiteering,' the source said. 'Employees were told to sacrifice because the company was apparently struggling, yet foreign shareholders were enriched with sums that dwarf what would have been needed to treat staff fairly.' At the time the funds were expatriated, pilots and other staff faced wage freezes and reduced benefits. Pilots, staff faced wage freezes Relating the cash exit, another source said that a 10% salary increase for pilots would, in contrast, have cost about R45 million a year. 'That is less than 4% of what was sent offshore in one financial period. There was no real inability to pay, just a decision to prioritise foreign shareholders over the people who keep the airline running,' said the source. Earlier this year, FlySafair came under fire after questions about its ownership structure and control led to a sanction by the Domestic and International Air Licensing Councils. ALSO READ: Here's how much FlySafair pilots are earning as increase offer rejected It was found the airline was controlled by its Irish parent and thus in violation of the law. Requirements in South Africa demand that 75% control of an airline remains in local hands, while the balance may be held internationally. Aviation attorney and private pilot Emile Myburgh said, despite allegations from the source, this is not directly a profit issue, but it raises other questions. Not directly a profit issue 'It certainly raises questions when significant profits go offshore. The fact that such significant sums go abroad is at least a red flag,' Myburgh said. FlySafair has long argued that its ownership meets the legal thresholds, but Myburgh said regulators look beyond the paperwork. 'The law looks at the de facto, real situation,' he said. ALSO READ: FlySafair pilots down tools, travellers warned of delays and cancellations 'It doesn't matter how you structure the 75% South African shareholding. If the tests laid down by the Air Services Licensing Act and Companies Act show that control lies with a non-South African resident, then it doesn't matter what the de jure situation is.' Myburgh said South African aviation law does not tolerate simulation. 'Even if the airline shows 75% local shareholding on paper, if the 25% foreign shareholder effectively controls the airline through voting rights or board appointments, then the airline is in breach of the Act,' he said. Near all of FlySafair controlled outside SA's borders The Citizen previously reported that near all of FlySafair is controlled outside South Africa's borders. The department of transport confirmed the carrier has appealed the domestic ruling but not the international sanction. FlySafair has about six months left to correct its control structures. Businessman Robert Gumede was purportedly approached to invest in the company but, according to sources, the deal fell flat. Gumede's office did not respond to questions from The Citizen at the time of publication. ALSO READ: Pilots at this airline may strike starting next week A department of transport spokesperson responded to questions about the dividend export, FlySafair's licensing status and progress of same. 'These matters are part of the agenda to be discussed in the upcoming meetings of both councils. The outcomes of the meetings will be made available in the next coming two to three weeks.' Myburgh said current wage negotiations between FlySafair's pilot body and the company could be impacted by the offshore dividend evidence. Wage negotiation could be impacted by offshore dividend evidence 'Huge dividends being paid to shareholders while employees are told to take the financial brunt of the risk has often been used, successfully, against employers who plead poverty while living the good life during wage negotiations,' he said. FlySafair did not acknowledge or respond to questions from The Citizen. The carrier failed to respond to questions over the large dividends paid to its parent via a third party, how it justified these in the light of imposing wage austerity, or provided any additional annual financial statements that showed or didn't show similar activity in other years. ALSO READ: Planning to Fly? Acsa warns of flight delays at OR Tambo International Airport The airline also avoided responding to questions about local investment, shareholding, the status of acquiring a B-BBEE partner and licensing council sanctions.
