Mediators step in on South African Airways strike

Independent mediators met management of South African Airways (SAA) and striking labour unions on Tuesday in an attempt to end a five-day old dispute that has crippled Africa's largest airline. The state-funded Commission for Conciliation, Mediation and Arbitration began the talks after Labour Minister Membathisi Mdladlana urged fresh efforts to end the strike which has grounded dozens of SAA's domestic and international flights.
"They have started the talks," said commission spokeswoman Lusanda Myoli, adding the talks were open-ended.
SAA cabin crew and ground staff went on strike on Friday after unions and management failed to reach agreement on wages at a final meeting on Thursday.
The union is demanding an 8 percent annual wage increase while SAA is offering 5 percent.
SAA dispatched airplanes to pick up waiting passengers in the United States and Europe under a pre-strike agreement that allowed crews already in those countries to work the return flight.
But the strike, one of the worst in the airline's history, is still playing havoc with travel schedules across Africa where SAA is the dominant regional carrier.
While SAA officials say that many of the airline's domestic flights are now operating more or less on schedule, there is rising public anger over perceptions that the airline has failed to keep customers adequately informed.
Huge queues snaked through South Africa's main airports on Friday and Saturday as the strike started, but were shortening steadily as many passengers scrapped travel plans.
Economists estimated that the strike could cost SAA up to half of its 50 million rand ($7.5 million) daily turnover and could have an increasingly serious knock-on effect on South Africa's tourist industry. "There's a brand SAA and a brand South Africa - if people can't reach the country conveniently then obviously the cost to the image of SAA and South Africa will start piling up," said economist Mike Schussler at brokerage firm T-sec.
Eskom economist Mandla Maleka said it was too early to say if the strike would be generally disruptive to the economy, but it did indicate that management had been taken by surprise by the union's decision to walk off the job.