Aircraft maintenance, repair and overhaul company Denel Aviation, part of the State-owned Denel defence industrial group, is trying to avoid retrenching all the 538 employees of its Aero Manpower Group (AMG), whose current jobs are destined to end on March 31 as the result of the decision by the South African Air Force (SAAF) not to renew its AMG contract. AMG falls under the Denel Personnel Solutions (DPS) division of Denel Aviation.

“The SAAF has informed DPS that the existing contract will come to an end at the termination date [March 31, 2013],” said the company in a statement on Thursday. “Because DPS has no contract or order cover beyond this date the company has no other option but to consider retrenchment for the entire DPS/AMG workforce. However, Denel is currently considering alternatives to retrenchments for the 538 affected DPS/AMG employees, including all possibilities for alternative employment. Denel has initiated the requisite consultation process with the representative unions.”

At the moment Denel Aviation CEO Mike Kgobe is on a roadshow to all the relevant SAAF bases, units and squadrons across the country, to explain to all affected employees the situation and the process that is to be followed. DPS has provided skilled maintenance personnel to the SAAF under the AMG contract since 1986.

“Denel will continue to negotiate with the SAAF to determine whether alternative solutions for the future of the contract can be found,” stated the company. “Denel is still hopeful and believes that it will find an amicable solution through our ongoing discussions with the SAAF and the SANDF [South African National Defence Force].”

However, the company will also start a process under Section 189A of the Labour Relations Act of 1995 – which covers retrenchments – with the relevant trade unions in an attempt “to reach consensus on issues that will affect the potential future employment of the relevant employees”.

In its own statement, the Solidarity trade union, which represents more than 300 of the threatened AMG workers, confirmed on Thursday that it had received a formal Section 189 notice from Denel Aviation. The first retrenchment consultation is scheduled for January 14. “It is, however, still not clear how many employees will be retrenched,” noted Solidarity spokesperson Jack Loggenberg.