• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Denel retrenchments to cost R170m

Jan 21 2013 16:15
Johannesburg - Defence Minister Nosiviwe Mapisa-Nqakula must stop the retrenchment of over 530 aircraft specialists at Denel Aviation, the Federation of Unions of SA said on Monday.

"We believe that the minister is best-placed to deal with our concerns about this issue," Fedusa general secretary Dennis George said.

"Apart from the obvious loss of jobs and socio-economic repercussions, it would be very unfortunate if these retrenchments go ahead because we will lose critical skills required by our economy."

The defence department gave notice in June last year that it would cancel its contract for aircraft maintenance with Denel Aviation/Aero Manpower Group (AMG). AMG is a business unit of state-owned defence company, Denel.

Negotiations were held to amend and possibly review the contract.

However, in November the SDA Air Force said it would not renew its contract with Denel Aviation/AMG after March 31 2013.

Denel Aviation/AMG confirmed the decision on January 15.

The company said because it had no contract or order beyond the end of the contract, it had no option but to let staff go.

Trade union Uasa, a Fedusa affiliate, represents more than half of the workers affected.

Uasa said the retrenchments would jeopardise the air force's defence capabilities. It said the company could have to pay an estimated R170m in severance packages.

George said the union federation sent a letter to Mapisa-Nqakula on Monday asking for an urgent meeting to discuss the matter.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

denel  |  retrenchment


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote