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UPDATE 3-S.Africa's SAA cancels flights, offers striking employees new wage increase

Mfuneko Toyana

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* SAA cancels all flights for Friday, Saturday

* Emergency meeting with unions at 1200 GMT

* SAA revised wage offer "not serious" - union (Adds two separate unions planning court challenge of job cuts)

JOHANNESBURG, Nov 14 (Reuters) - South African Airways (SAA) has canceled flights scheduled for Friday and Saturday because of a pending strike by a majority of employees but said on Thursday it hoped its revised wage offer would avert the walkout at the state-run carrier.

SAA has failed to turn a profit since 2011 while relying on state bailouts to fund a growing financing gap.

The airline is also without a permanent chief executive and has yet to file annual results for the two most recent financial years because of concerns about its viability as a business.

Unions representing about 3,000 of its 5,000-member workforce said on Wednesday that cabin crew and other workers would strike over wages and plans to cut more than 900 jobs.

The carrier said on Wednesday it might never recover if the strike went ahead.

Unions are demanding an immediate 8% increase, and after late night negotiations SAA said on Thursday it would offer a 5.9% raise from April when it hopes to have secured the necessary funding.

"The increase is not immediately available. We can only implement it once we have secured funding," SAA spokesman Tlali Tlali said during a live interview on television news channel eNCA.

"We have a meeting scheduled for today at 2 o'clock and we are hopeful we will be able to resolve the issue ... It will include all the unions ... and if the meeting yields positive results we will then activate some contingency plans that will allow us to reinstate flights," said Tlali.

Only flights directly operated by SAA would be affected. Flights by subsidiaries Mango, SA Express and SA Air Link, as well as those of private operators, would not be affected, SAA said.

INDEFINITE STRIKE

The airline said it expected unions to respond at an emergency meeting at 1200 GMT.

Unions said the strike would begin at 4 a.m. (0200 GMT) on Friday and go on indefinitely. They are calling on SAA's check-in, ticket sales, head office, technical staff and ground staff to take part.

Zazi Nsibanyoni-Mugambi, president of the South African Cabin Crew Association (SACCA) that is leading the strike with the National Union of Metalworkers of South Africa (NUMSA), said the new offer was unacceptable.

"They really need to get serious, 5.9% simply won't cut it. It's just over 1% more than we are asking for and we think it's attainable, so last night we asked SAA (negotiators) to go and get a fresh mandate from management," said Nsibanyoni-Mugambi.

Numsa spokeswoman Phakamile Hlubi-Majola said the union was still consulting its members on whether to accept or reject the revised wage offer.

SAA flies around 6.8 million passengers annually to six continents with routes to New York, London and Hong Kong among its eight international destinations.

Two other unions at South African Airways (SAA) representing about 2,500 employees mostly in technical and mid-management jobs, said they would go to the labor court to block the state airline's plan to cut jobs.

"The timing was not good at all. How can you issue Section 189 (redundancy) notices while you are busy in a wage dispute. It's bad faith bargaining for SAA to come with this threat," said Frank Mackenzie, president of union AUSA. (Reporting by Mfuneko Toyana; editing by Clarence Fernandez, Jason Neely and Emelia Sithole-Matarise)