The Congress of South African Trade Unions (COSATU) is saddened by news that Mango Airlines will be wound down and will never take to the skies again.
Prior to Covid-19, Mango was the star performer in the SAA stable, even outdoing its parent company. However, in July 2021, the orange-branded low-cost carrier was grounded due to mounting debt and withdrawal of financial support from government. It was subsequently placed under business rescue, and now four years later, it will not be getting off the ground again.
As recently as June, business rescue practitioner (BRP) Sipho Sono is reported to have said Ubuntu Air Services was waiting in the wings to take over the airline, but now the consortium has walked away from the deal.
Most disheartening is the 501 retrenched workers, who will never get their jobs back. The pain of losing this many jobs is made worse because Sono is the BRP. While it might appear unfair to blame Sono for the failed rescue, the truth is he has had four years in which to give Mango a new lease on life. He maintains that a structured wind down will ensure creditors get more out of a rand than a liquidation would, meantime he is smiling all the way to the bank having earned a cool R11 million from the unsuccessful rescue of Mango.
Granted, COSATU’s perception of Sono is coloured by previous interactions. Two weeks ago, attorneys representing the Registrar of Labour Relations appeared before the Labour Court, in a final effort to remove Sono as the administrator of COSATU-affiliated union – Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (CEPPWAWU).
CEPPWAWU was placed under administration in June 2020. After the initial administrator was removed, Sono was brought in as interim administrator for six months before eventually being appointed. The court ordered him to appoint a reputable facilitator to convene Congresses as per the union’s constitution. The said Congresses were to be concluded by September 2023, after which Sono would handover management and control of the union to the newly appointed leaders, when his term expired on 12 December 2023. However, Sono is still at CEPPWAWU, drawing exorbitant fees, and refusing to leave even though union members, former leaders and employees want him gone.
Judgement has been reserved in the case seeking the removal of Sono as CEPPWAWU administrator. In an economy growing at a meagre 1%, with a 42.9% unemployment rate, it is sad to note that Mango’s fate has been sealed.
Issued by COSATU
Zanele Sabela (COSATU National Spokesperson)
Mobile: 079 287 5788 or 077 600 6639
Email: zaneles@cosatu.org.za