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Denel Aviation maintenance retrenchments confirmed

15th January 2013

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

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Denel Aviation has confirmed that it will start to retrench the entire workforce of its Denel Personnel Solutions/Aero Manpower Group (DPS/AMG) with effect from the end of March. This is because the South African Air Force (SAAF) will not be renewing its current contract with DPS/AMG, which lapses at that time.

Denel Aviation is an aircraft maintenance, repair and overhaul company and is part of the State-owned Denel defence industrial group. DPS has provided skilled maintenance personnel to the SAAF under the AMG contract since 1986.
 
“Because DPS has no contract or order cover beyond this date [March 31] the company has no option but to proceed with the retrenchment for the entire DPS/AMG workforce,” stated Denel Aviation in a press release on Monday evening. This will result in 538 employees losing their jobs.

Last month, Denel Aviation CEO Mike Kgobe travelled across the country to meet and brief DPS/AMG personnel at SAAF bases, squadrons and other units. He told them of the situation and of the processes that would be followed. On Monday, the company met with the trade unions which represent the affected workers.

“Discussions took place in terms of Section 189A of the Labour Relations Act, 1995, in an effort to reach consensus on issues that will affect the potential future employment of the affected employees,” reported the company in its press release. “The parties will focus on finding ways to minimise the negative impact of the retrenchments and Denel has committed to assist with seeking job opportunities for the affected employees both within the Denel group and the broader market.”

That the SAAF intended ending its contract with Denel Aviation first emerged in June last year, with notice being given to that effect. This was followed by talks on the possibility of amending and reviewing the contract. But in November the SAAF confirmed in a letter that it would not be renewing the contract next year. It is not yet known how the SAAF intends to fill the maintenance gap that will be created by the termination of the DPS/AMG contract and the retrenchment of the skilled Denel employees.

Edited by Creamer Media Reporter

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