The State-owned Denel defence industrial group announced on Thursday that it had reached a new agreement with the South African Air Force (SAAF) to replace the current Denel Personnel Solutions/Aero Manpower Group (DPS/AMG) contract, which expires at the end of March. The new arrangement will see the SAAF retain the services of 139 of the 523 aircraft specialists currently employed under the DPS/AMG contract. The remaining 384 workers will lose their jobs.

DPS/AMG falls under aircraft maintenance, repair and overhaul company Denel Aviation. DPS has provided skilled maintenance personnel to the SAAF under the AMG contract since 1986.

The 139 workers to be retained were selected on the basis of the skills required by the SAAF, and they will be complemented by air force personnel. “This is indeed a breakthrough,” stated Denel Aviation CEO Mike Kgobe. “With this solution we are able to ensure that the jobs of some of our employees across a number of categories and locations are retained with the requisite order cover.”

He affirmed that the new deal would strengthen the relationship between Denel and the SAAF, and would retain critical high-level skills while saving the SAAF money. “This is a win-win situation for both Denel and the SAAF which is indicative of the mature and strategic relationship that exists between the two organisations which was reinforced through the cooperation agreement concluded between the two organisations in 2012.”

The Solidarity trade union, however, expressed a different view. It represents 203, or 52%, of the workers who will be retrenched. Only 24 Solidarity members will keep their jobs.

“It is most disappointing that only a handful of experts will be assured of work for the next year,” asserted union spokesperson Jack Loggenberg on Friday. “The new contract is valid for 12 months. Chances are remote that the remaining employees will be redeployed within Denel or within other companies. Those employees received final notices yesterday [Thursday] in order for Denel to comply with the termination date of 31 March of the current contract.”