SAA rescue team to appeal judgment on retrenchments
Ruling in favour of unions adds to the business rescue practitioners’ difficulties
The SAA business rescue practitioners are to appeal Friday’s judgment in which the labour court in Johannesburg set aside retrenchment notices issued to employees on the grounds that these were procedurally unfair.
The judgment has thrown a new spanner in the works for Les Matuson and Siviwe Dongwana, who are attempting to wind down the company in the absence of cash to fund its operations. However, it has also alarmed business rescue professionals across the board, as it threatens to constrain their ability to restructure the workforces of distressed companies during business rescue, which has up to now been the established practice.