■ ZIMBABWE: Air Zimbabwe sends 600 employees on forced leave in bid to cut wage bill.

Air Zimbabwe (UM) has embarked on a staff rationalization project to trim down its bloated workforce from 1020 down to roughly 300 as part of streamlining measures aimed at turning the loss making airline into a viable, profitable entity.

■ SOUTH AFRICA: No last minute reprieve for 523 Denel AMG employees as SAAF confirms contract will not be renewed.

Denel Aviation is to proceed with the laying off of 523 employees (538 according to Denel) from its MRO division, Aero Manpower Group, and Denel Personnel Solutions, come 31 March after the South African Air Force (SAAF) confirmed during the first retrenchment consultation that it would not be renewing its contract.

■ TUNISIA: Tunisair to axe 1'700 jobs, dramatically grow Africa network as part of plans to return to profitability.

Rabah Jrad, the CEO of Tunisian national carrier Tunisair (TU), has said the airline intends to reduce its workforce of 8'500 employees by 1'700 workers between 2013 and 2014, as part of a restructuring plan to help reduce its bloated payroll, following a USD98.3million (EUR77.2million) loss for 2011.

■ SOUTH AFRICA: Denel Aviation to retrench 523 as SAAF confirms contract will not be renewed.

523 aircraft maintenance specialists at Denel Aviation’s Aero Manpower Group, the MRO division of the South Africa's government-backed Denel Corporation, are to be retrenched as a result of the South African Air Force (SAAF) deciding against renewing its contract with the firm, set to lapse next year.

■ MOROCCO: Air France Industrie to outsource 100 jobs to Casablanca.

In a move bound to have serious repercussions in France and with Air France trade unions in particular, the maintenance wing of Air France, Air France Industrie, has announced it will outsource 100 out of the 450 technician jobs at its Croix-du-Sud Facility at Toulouse-Blagnac, to Morocco.

■ SOUTH AFRICA: New SAA boss announced as mass resignations preempt mass firings.

In a dramatic chain of events, the entire boardroom scene at South African Airways (SA) changed literally overnight, when eight of its 14 board members, including its chairwoman Cheryl Carolus, pre-emptively resigned their positions on Thursday evening, following a leaked media report earlier in the week that allured to looming dismissals at both SAA and its sister regional carrier, SA Express (XZ).

■ KENYA: Kenya Airways Layoffs Debacle takes new twist after revelations KQ execs were awarded 25% payrises over the last year.

Quite a few eyebrows were raised in Nairobi during the presentation last week of Kenya Airways' (KQ) annual report in which it was revealed that executives' wages at the airline had risen by almost 25% over the last year; a development that comes at a time when the airline is facing protracted legal battles and now even Prime Ministerial condemnation over plans to lay off (or as KQ would prefer, "outsource") 650 'excess' employees cited by the company as being amongst the causes for their 57% slump in profits last year.

■ KENYA: Courts block Kenya Airways staff layoffs.

Kenya Airways' (KQ) move to can over 300 of their employee's in a bid to reduce its bloated wage bill following a hefty 57% knock on profits in Q1 of the 2012/2013 Financial Year, has been put on hold by the Kenyan courts "until a lawsuit brought by the Aviation and Allied Workers Union (AAWU) challenging the layoffs is heard and determined."

The Union alleges in its suit that Kenya Airways, in addition to the Minister of Labour and the Attorney General, did not follow the prescribed procedures in labour law when announcing and planning for the restructuring exercise.

"The respondent [Kenya Airways] is hereby restrained by way of temporary injunction from proceeding with any negotiations or any staff rationalization that may render members redundant pending the hearing," Judge Onesmus Makau said in court orders seen by Reuters on Saturday.

Source [Reuters]

This development comes after a Tuesday meeting between the Kenya Airways board and the AAWU to discuss the redundancies, never took off (pardon the pun):

"The AAWU, which maintains that it had not been informed in advance about the retrenchment until last Thursday, had requested a meeting with KQ to present its proposal, and a date was fixed for yesterday.“We never met. They never contacted us,” Mpojiwa said yesterday evening."

Source [The Star Kenya]

A court date for the case has been set for 21 September 2012.

Titus Naikuni (StandardMedia)

Kenya Airways has been subject to numerous union backed strikes over the past few years: 2008, 2009, 2010, 2011 and 2012 all of which had to do with salary-related grievances and all of which invariably cost the airline dearly as Kenya Airways CEO Titus Naikuni pointed out that in addition to high oil prices and an excessive workforce, "significant annual staff salary increments, and costly decisions driven by the Collective Bargaining Agreements (CBA) negotiations with the staff unions had driven labour costs to unsustainable levels."

Under the intended restructuring plan, various junior staff and management were given until 10 August 2012 to adhere to the voluntary redundancy programme. In the likely event that adequate numbers were not reached, then mandatory lay offs would have to be effected. As part of the downsizing exercise, Naikuni noted that some positions would be declared redundant and in some cases, the airline would have to "outsource labour and services in some of the non-core functions of the airline, due to the technical nature of the industry."

■ KENYA: Kenya Airways puts faith in newer aircraft and staff cuts as global oil prices continue to hit hard.

Citing "a downturn in passenger volumes, declining revenues, unstable fuel prices and an increasingly competitive environment", Kenya Airways' CEO and Managing Director, Titus Naikuni, (KQ) on Friday announced plans to reduce the Kenyan national carrier's staff overhead in a bit to streamline the airline following a 57% drop in profit from KSh3.5billion last year, to KSh1.6billion in Q1 of this year.

Naikuni stated that Kenya Airways' wage bill had more than doubled from KSh6billion in 2007 to KSh13.4billion in 2012 following a rise in the workforce size from 3'729 to 4'170 over the same period, which, with some 664 foreigners included, brings the overall tally to 4'834 employees. It was this increase that had eaten away at the airlines profitability and thus necessitated the redundancy drive which would start primarily with junior and management staff.

“Despite various initiatives that we have put in place, our cost base continues to be extremely high. This coupled with other direct operating costs, have put pressure on our contribution margin reducing our overall ability to operate profitably,” he explained.

Source [Kenya Airways]

Brent Crude Prices 2007 - 2012

As part of the streamlining initiative, Kenya Airways will first offer a "Voluntary Early Retirement Package" (VERP) to staff willing to leave the organization before 31 August, after which, it will pursue a mandatory redundancy programme, should the VERP fail to attract satisfactory figures.

In recent weeks, Kenya Airways has moved to implement a number of measures designed to ensure the company's viability in both the short term, and long term - with particular reference to the airlines Project Mawingo which aims to transform the airline into a more globally competitive player by 2020. In late June, it signed a mandate with the African Export-Import Bank (Afreximbank) to secure financing for Kenya Airways' fleet renewal initiative which will involve the purchase of nine (9) new Boeing 787-800s (Dreamliners) (B787s), one (1) Boeing 777-300ER (B777-300ER), and ten (10) Embraer EMB190 aircraft (E-190s). The new aircraft and their added efficiency will ensure Kenya Airways' fuel bill is kept as low as possible.