THE PROCESS of exiting the greater part of Denel’s Aerostructures Manufacturing Business is now at an advanced stage with major steps put in place to minimise the impact on job losses within the company.
This follows the mutual agreement by Denel and its customers to transfer the manufacturing of aircraft parts to alternative suppliers as the business was no longer sustainable for Denel.
The Divisional Chief Executive of Denel Aeronautics, Mike Kgobe, says the company has concluded consultation as required by the Labour Relations Act Section 189A with relevant stakeholders including Organised Labour and Representatives of Non-Unionised Employees.
The consultation process was facilitated by a Senior CCMA Commissioner and will result in retrenchments based on operational requirements.
“We have really worked hard in trying to keep job losses to a minimum and some of the employees will be transferred to other positions within the Denel group while voluntary severance packages have been offered.”
Denel applied to both the Departments of Public Enterprises and Finance to wind up the business of Denel Aerostructures SOC Ltd in terms of Section 54 of the Public Finance Management Act. Formal approvals were granted during 2019.
The Denel Group Chief Executive Officer, Danie du Toit says the decision to wind up the company is in line with the broader long-term strategy to reposition Denel and return it to profitability.
The winding up of the Aerostructures Manufacturing business will not affect other businesses conducted by Denel Aeronautics at the Kempton Park campus.
This includes the support given to the Rooivalk combat helicopter, the Oryx medium transport helicopter, the C130 transport aircraft together with the export business for the Cheetah multi-role fighter aircraft and Puma helicopter and various maintenance, repair, and overhaul (MRO) services provided to both the SA Air Force and other customers.
Image (Denel GCEO Danie du Toit says winding up will help consolidate the company’s profit).