At least 300 employees face a bleak future as cash-strapped Air Botswana announced it can no longer pay monthly salaries as its financial crisis takes a hard knock.
The ailing airline has decided to cut employees’ salaries by half across board. But the problems at Air Botswana are not unique to the national carrier as the Covid-19 pandemic wreaks havoc on Africa’s aviation sector.
Prominent carriers like Kenya Airways have trimmed business trips across the continent down to an absolute minimum. Popular destinations to Asia, Europe, and North America have also been affected.
In February, Air Namibia ceased operations and filed for bankruptcy. The airline had been in operation for more than 70 years.
For a year now, South African Airways has grounded its fleet. It had been struggling even before the Covid-19 pandemic struck.
Commenting on the latest development, Air Botswana Employees Union (ABEU) accused the air line of negotiating in bad faith.
It is reported that for the next five months the company will not be able to pay full salaries to its entire employees.
Staff salaries will be cut by 50% for those who will be going to work while those at home will receive no salaries.
Responding to this publication queries, director of legal Services of Air Botswana Ogona Mokoko said: “Air Botswana has engaged its staff and one of the ways for the business to continue has been agreed to be salary cuts across the board.”
He said this applies in proportion to all staff members’ gross earnings and therefore there are no staff members fully enjoying their benefits.
Mokoko said that it is in the interest of the airline and its staff to survive this pandemic.
He revealed that the salaries will be cut off by 50% and those who are home will get no salary.
Mokoko explained that Covid-19 pandemic has had unprecedented impact on the operations of the airlines, the world over and as “you may be aware, even as some industries are gearing up for recovery, the restrictions on travel, even domestically continue to prevail as a way of combating this pandemic.”
He said Air Botswana has not been spared and its revenues have been severely affected and as such, the airline is currently unable to meet its contractual obligations, and this includes payment of its staff salaries.
“This is mainly due to travel restrictions as well as generally reduced travel resulting from the impact this pandemic is having on other economic sectors,” he said.
Mokoko said to preserve the operations of the airline, during 2020, they cut conditional allowances for its staff, asked staff to take leave due to its inability to provide work, released some of its executive management, among others however, this is by far the biggest salary cut and is planned for an initial period of five months.
He acknowledged that this is a very difficult time, emotional draining and life changing for all the airline employees and their families.
He further said it is very undesirable but inevitable for the survival of the airline and the airline management shall endeavour to exploit all opportunities to improve the livelihood of its employees.
Mokoko indicated that the airline is monitoring this unfortunate development, but all staff are optimistic that this would do a long way in preserving the operations of the airline, until the financial situation improves.
“The airline has also developed a 2021-2024 Recovery strategy, which aims at diversifying the airlines revenue from being passenger dependant to cargo. It is through this strategy that the airline hopes to gradually recover from the impact of Covid-19 and to continue to operate as a going concern,” he said.
Contacted for comment the secretary general of ABEU Kagiso Alias said the airline has issued letters to employees that indicate that the employer will cut off 50% from salaries beginning of this month for those who will be at work and those who will not be at work will not be getting anything.
Accusing the air line of negotiating in bad faith, Alias explained that both the union and the employer have been negotiating and the union had earlier suggested several options but unfortunately the airline decided to cut salaries while the negotiations were still ongoing.
“What breaks my heart most is the fact that the air line did not inform the union how many staff members will remain at work and get 50% and those who will be home and get no salaries,” he said.
At the moment the air airline has about 300 staff members and out of this about 130 are union members.
“This is totally not acceptable at all. The union will continue to engage with the air line and come up with better solutions. I form part of those employees who will not be getting any salary for five months,” he said.
A letter dated 4th of May 2021 addressed to First National Bank from Air Botswana titled “temporary reduction of salaries” states that “this correspondence serves to inform you that owing to the effects of outbreak of covid-19 pandemic on our business and the subsequence restriction in travel movement, the airline finds its in a very dire financial situation”.
It says this undesirable situation has rendered the airline unable to honour its contractual obligation of payments of staff salaries.
AB says: “In light of the above stated, the airline is therefore unable to employees’ full salaries for the next five months, May 2021 till September 2021 inclusive. The airline therefore ask your indulgence and request for repayment holiday on behalf or our employees for the next five months period mentioned above.”
