South African Airways (SAA) has acknowledged a notification from the SAA Pilots Association (SAAPA) and National Transport Movement (NTM) Pilot Forum about their decision to commence ‘work-to-rule’ industrial action effective Wednesday, 19 March 2025.
SAA expresses deep regret over the Pilots’ decision to proceed with industrial action, particularly in light of the comprehensive and favourable final offer extended by the Company on 5 March 2025.
SAA Group CEO, Prof. John Lamola, says ” We have implemented strong contingency measures to minimize the impact of this industrial action. Our focus remains on ensuring uninterrupted service and providing real-time updates on flight statuses to all stakeholders. Our priority is to resolve outstanding issues collaboratively while maintaining service continuity and minimizing inconvenience to our valued customers while upholding the highest standards of safety and operational reliability,” he emphasized.
SAA continues to navigate significant financial pressures, operating within a challenging environment marked by elevated fuel prices, a weakened rand, intense competition, and ongoing productivity and labour cost hurdles.
Lamola, says, “We consider our offer to the pilots both fair and generous, especially given the financial challenges the airline continues to face. SAA remains dedicated to reaching an amicable resolution through ongoing negotiations and open communication with the pilot body and all stakeholders.”
Summary of Pilot Salary Negotiations at SAA
• Negotiation Timeline:
o Discussions began in May 2024, with pilots initially demanding a 30% salary increase, which was later reduced to 15.7%.
• Initial Adjustment:
o In November 2024, SAA implemented a 7.2% average salary increase and increased the medical aid subsidy from R2,275 to R4,000 monthly. This was rejected, leading to a pilot strike on 5 December 2024.
• Agreements Reached in December 2024:
o During the strike suspension negotiations in December 2024, an agreement was reached on the following:
1. A 1% (one) on Total Cost of Employment (TCE) increase in addition to the increase already implemented in the November 2024 pay month, effective from 1 December 2024.
2. An increase from the current 9 DFDs per month to 10 DFDs per month.
2.2.1. For every 3 days of leave taken one duty-free day will be removed for that month.
2.2.2. Duty-free days will be credited back to the pilot where sick leave falls on duty-free day/s.
3. All SAA V1 leave will be paid out during the March 2025 pay month.
4. From 13 December 2024, all flight deck crew receive a daily domestic allowance of R200,00, which is adjusted according to the subsistence allowance policy communicated on 17 February 2025.
• Final Offer (March 2025):
Following the new series of negotiations from 23 December 2024, SAA made a final offer to the pilots on the 5th of March 2025, summarised as follows:
1. Salary Increase
1.1. A 3-year salary increase agreement and the introduction of a longevity salary progression model for pilots as follows:
1.1.1. A new longevity salary progression model for pilots will be introduced.
N.B. For clarity, SAA absorbs the cost of implementing this longevity salary scale and is not deducted from the 7.66% increase on TCE to be paid with effect from 1 April 2025, as is presented in the first table below and the table in Annexure A.
1.1.2. The remaining 6% of the Pilots’ % demand for 2024 is spread out and paid at 3% per year over 2 years on 1 April 2025 and 1 April 2026.
1.1.3. Also, on 1 April 2027, an additional 3% increase will be paid for the third year of the agreement.
1.1.4. The projected CPI for 2025, 2026 and 2027 will be added to the 3% increases in 2.1.2 and 2.1.3. above.
The cost for the longevity model is incorporated into the total increases above as per the Table below:
The notch increases for FY2026 and 2027 will be added to the increases in the table directly above on the anniversary date when the pilot joined SAA.
2. Specificity in Rostering
The Company simulated the Pilots’ proposal on duty hours and determined that it did not compromise the scheduling of pilots or SAAs route schedule. SAA has agreed to implement the SAAPA proposal from 1 May 2025, subject to the configuration on PegaSys being completed before then. Duty hours away from the base will be credited after rest at 4h30 for each 24-hour cycle.
3. Leave
One (1) additional day leave per year, with another day on voting years, to be scheduled
around operational requirements to compensate for public holidays.
4. Rebate Travel
4.1. Six (6) ID75 tickets for independent children
4.2. Six (6) ID75 tickets for Parents
4.3. Twelve (12) ID 90 tickets, an increase from the current 6 ID 90 tickets
4.4.Pilots’ spouses will get one confirmed ID00 return ticket p er annum when travelling with the pilot operating a flight outside of peak and other busy periods.
5. Shared Roster System
From 1 April 2025, a pilot exercise will allow female pilots with children who are interested to share a roster (e.g., two weeks on, two weeks off) with half pay and benefits. The pilot exercise will be for a year to determine the feasibility of full implementation for any pilot thereafter.
6. Transparency in Rostering Bids
As primary users, the pilots will participate in the User Specifications process, and the procurement of the appropriate technology will be expedited under the provisions on emergency procurement of SAA’s Supply Chain Policy and the Delegation of Authority to the CEO.
The Company believes that the salary increase for pilots is very reasonable and generous in the circumstances, especially in light of SAA’s current financial state, which has been communicated and presented throughout the negotiation process.