Monday, December 10, 2012

■ SOUTH AFRICA: Denel Aviation to retrench 523 as SAAF confirms contract will not be renewed.

Denel 523 aircraft maintenance specialists at Denel Aviation’s Aero Manpower Group, the MRO division of the South Africa's government-backed Denel Corporation, are to be retrenched as a result of the South African Air Force (SAAF) deciding against renewing its contract with the firm, set to lapse next year.

Denel Aviation's global business
Denel Aviation's global business (Denel)
There is some apprehension as to who will pay out the worker's retrenchment packages as Denel itself has recently undergone a hefty restructuring process in a bid to save money.

According to Solidarity spokesman, Jack Loggenberg, there is also a potential dispute between Denel Aviation/AMG and the air force concerning who would be responsible for the employees' severance packages worth millions of Rands, should retrenchments be unavoidable. 
"In accordance with the contract the SA Air Force is responsible for the severance packages. It is uncertain whether the air force will, in fact, be responsible for retrenchments and subsequently the severance packages once the contract has expired. Denel Aviation/AMG maintains that the air force will still be responsible for paying the severance packages. Our concern is that more retrenchments could follow at Denel Aviation/AMG should it pay the severance packages. Denel has just gone through restructuring."
Source [Solidarity]

Denel and the South African National Defence Force (SANDF) are currently locked in negotiations over the worker's compensations, as well as their future accommodation prospects, though no specific date for their outcome has been give.
"It is a matter between Denel and SANDF. As soon as we finalise we'll be able to give you an update," said Denel spokesperson Sinah Phochana.
Source [Mail & Guardian]

Notice of the SAAF intending to let  its contract with Denel Aviation expire was given last year in June, with confirmation of the move coming last month.