Today's Labour News

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DenelBloomberg reports SA’s insolvent national arms company Denel is seeking to lay-off about 13% of its workers in a bid to survive after the government spurned its plea for a bailout.  The manufacturer has told 379 workers in its artillery, ammunition and armoured-car divisions that they could lose their jobs, according to Helgard Cronje of trade union Solidarity.  

The so-called section 189 notice sent to the employees is a legal step needed before cuts can take place.  While idled national airline, SA Airways (SAA), was allocated R10.5 billion in last month’s interim budget, other struggling state companies including Denel were not helped.  “Consultations between Denel management, labor and employee representatives have started.  The company is considering rationalizing some positions,” Denel indicated in an e-mailed response to questions.  The Pretoria-based company currently has a workforce of 2,951 people, including contractors and students.

  • Read the full original of the report in the above regard at BusinessTech

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