Another South African union faces financial ruin as a result of the COVID-19-enforced lockdown. Sport Employees Unite, the workers union, revealed that the staff of the Falcons Company, the professional arm of the Falcons Rugby Union, have not been paid their salaries this month – writes Jan de Konig.
The cash crunch at the East Rand-based union comes as a result of the cancellation of the 2020 Global Rapid Rugby season.
Competing as the Malaysia Valke, based in the Malaysian capital Kuala Lumpur, the team used the Rapid Rugby tournament – funded by Australian billionaire Andrew Forrest – as their main source of income.
However, since the Perth-based venture was canned in April, there has been no income for the East Rand-based Falcons.
SEU CEO Piet Heymans said there has been a “lack of communication” from the acting Falcons CEO Ettiene de Lange regarding the situation.
He regards this as a “lack of respect”.
“In terms of section 129(7) of the Companies Act 71 of 2008, there is an onerous obligation placed on a board of directors of a company wherein if the board determines that a business is in fact in financial distress, they are to either adopt a resolution to commence with business rescue proceedings, alternatively, deliver a written notice to each of its creditors, employees, trade unions and shareholders, setting