South African Airways has announced that after reaching an out-of-court settlement, Monwabisi Kalawe will resign as its chief executive and as a director.
The out-of-court settlement resulted from efforts by Kalawe to stop disciplinary action against him.
The SAA board suspended Kalawe last October over alleged misconduct, which included his allegedly having hired a friend on an inflated salary. Kalawe was alleged to have appointed a former colleague as an executive assistant on a salary more than double the amount earned by the previous employee.
SAA spokesperson Tlali Tlali issued the following statement:
The urgent application launched by Mr. Kalawe in the Labour Court of South Africa in respect of two alleged protected disclosures and referred to arbitration before Advocate Nazeer Cassim SC (who is also the disciplinary chairperson) was argued by the parties’ legal representatives on Friday 17 April 2015.
During the arbitration proceedings both parties agreed that the employment relationship between Mr Kalawe and SAA had irretrievably broken down and that Mr. Kalawe would not seek to continue employment at SAA.
Adv. Cassim SC strongly urged both SAA and Mr. Kalawe to mutually agree and resolve the terms of Mr. Kalawe’s departure from SAA to avoid the costs and damage associated with protracted legal proceedings to both parties and to protect the best interests of SAA as a Public Institution.
The parties have now agreed that Mr. Kalawe will resign his position as the CEO and as a director of SAA with immediate effect, thus rendering further disciplinary proceedings unnecessary. Mr. Kalawe will receive a payment from SAA in lieu of his contractual three months” notice and outstanding leave pay up to the termination date. He will, in addition, receive an ex gratia payment equivalent to an additional three months’ notice in return for agreeing to give his notice of resignation with immediate effect.
The parties believe that this resolution avoids further expensive and protracted litigation which is not in the interest of either party and is ultimately in the best interests of both parties and the public good. This settlement will enable SAA to focus its full attention on the operational challenges facing SAA. The parties have agreed that they will issue no further media releases concerning the settlement of the matter.
Edited by William Sykes