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BusinessLive reports that state-owned arms manufacturer Denel says the process of exiting the greater part of its aircraft components manufacturing business is now at an advanced stage, with major steps put in place to minimise the impact of the withdrawal on job losses.
The loss-making company recently entered into a mutual agreement with its customers to transfer the manufacturing of aircraft parts to alternative suppliers as the business is no longer sustainable. The divisional CEO of Denel Aeronautics, Mike Kgobe, said the company had concluded consultations with stakeholders, including organised labour and representatives of non-unionised employees as required by the Labour Relations Act. The consultation process was facilitated by a senior official of the CCMA and would 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,” said Kgobe. Denel group CEO Danie du Toit said the decision to wind up the division was in line with the broader long-term strategy to reposition the company and return it to profitability. He indicated that the winding up of the aircraft components manufacturing business would not affect other businesses conducted by Denel Aeronautics at the Kempton Park campus.
- Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive
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