The State-owned Denel defence industrial group has announced that it has 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 (or 73.4% of the skilled workforce) will lose their jobs. DPS/AMG falls under aircraft maintenance, repair and overhaul company Denel Aviation. DPS has provided skilled maintenance personnel for 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.”

The agreement between the company and the SAAF will meet the requirements of both Parliament and the National Treasury. In late January, the Department of Defence (DoD) issued a state-ment which said that the cur-rent contract with DPS/AMG had in 2009 been found by the auditor-general as not being in compliance with the Public Finance Management Act and National Treasury rules. Since then, the auditor-general has repeatedly cited this irregular situation. “The termination of the contract, in accordance with a provision stipulated in the contract,” stated the DoD, “places the SAAF in full compliance with the auditor-general’s recommendations and allows the SAAF to develop its strategic partnership with Denel Aviation unhindered by governance irregularities”.
Kgobe 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.” Trade union Solidarity, 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. “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 [on Thursday] in order for Denel to comply with the termination date of March 31 of the current contract.”

Solidarity has warned that it will oppose any attempts to use the drawing-up of the new contract to discriminate against older and white workers. “No discrimination will be tolerated,” asserted Loggenberg. “It is, however, not true that most of the technicians are 60 and older. Many of them are indeed older than 50, with only a few being 60 or older. “The contract term will be used to facilitate a smooth transition. “The transition aims to establish in-house expertise.”
Under the current contract, DPS/AMH had people deployed at air bases and squadrons across the country, including Bredasdorp, Hoedspruit, Langebaanweg, Lephalale, Makhado and Ysterplaat, with the biggest concentration (some