South Africa’s Soldarity trade union reported on Monday that it had been verbally informed that all 523 aircraft maintenance personnel of Denel Aviation’s Aero Manpower Group (AMG) will be retrenched, as a result of the decision by the South African Air Force (SAAF) not to renew its contract with the State-owned company, which lapses on March 31 next year. The union should receive written confirmation on Tuesday and the first formal meeting on the retrenchment process is scheduled for January 14.

“According to the contract the air force will be responsible for paying out severance packages should retrenchments arise out of its contract with Denel Aviation/AMG. However, there is uncertainty over whether or not the air force will be responsible for paying out severance packages after the contract has expired,” observed Solidarity spokesperson Jack Loggenberg. “Denel Aviation/AMG  maintains that the air force will still be responsible for paying the severance packages. We are concerned that if Denel Aviation/AMG were to pay the severance packages, more retrenchments would follow at the company. Denel has just gone through a process of restructuring.”

There is, as yet, no indication as to what the SAAF will do to replace the AMG specialists.
The service could take over their contracts, which would require the issuing of Section 197 notices. However, under Section 197 of the Labour Relations Act, the conditions of service and pay of the workers whose contracts are taken over would remain the same as when their contracts were transferred. “We are concerned that the air force, to cut on expenses, will wait until all the employees have been retrenched before appointing some of them at a lower salary to do the same work,” stated Loggenberg.

“This news could hardly have come at a worse time,” he affirmed. “These employees are stationed at various squadrons all over the country. They will probably not only lose their jobs, but also their air force housing within a matter of months. There is also a dark cloud over 523 families’ Christmas holidays which is traditionally a time for relaxing and spending time with family and friends.”

That the SAAF intended ending its contract with Denel Aviation/AMG 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 last month the SAAF confirmed in a letter that it would not be renewing the contract next year.