ATGWU signed a two year Collective Bargaining Agreement (CBA) with South African Airways (SAA) in November 2008. The workers got an increase that was 2% less the inflation rate for the 2008/09 and will get an increase of inflation rate plus 2% for 2009/10. This was reached after the union appreciating the Company's financial crisis and freezing of salaries in 2007/08.
The increase will affect salary, Housing allowance, Transport allowance and Laundry. The workers were also allowed to upgrade their medical insurance scheme from the lower to upper grade with effect from August 2009. The contribution of the scheme will be 80% by the Company and 20% by the workers.
In the mean time the union will be studying the impact and effect of a multiple year agreement as it monitors the implementation.
This is the first multiple year agreement the union was signing.