Denel retrenchments minimised: Solidarity

14 April 2010 - 18:18
By Sapa

Solidarity is trumpetting how it limited retrenchments at Denel entity Denel Saab Aerostructures.

"Originally there would have been the retrenchment of nearly 17 percent of employees (about 141 employees) at the company," the trade union said in a statement on Wednesday.

Retrenchments - after more than five months of extensive consultation - would be limited to only 85 - including voluntary severance packages," Solidarity spokesperson Jaco Kleynhans said.

Of the employees affected by forced retrenchments, only 16 were Solidarity members.

Another five members had taken voluntary severance packages, Kleynhans added.

"Solidarity is the largest trade union in DSA, but thanks to sustained pressure during the consultation process, the trade union succeeded in keeping retrenchments to a minimum."

In terms of the Section 189 notice issued to Solidarity in September last year, DSA's management blamed the planned retrenchments on the high cost structure, insufficient income, the global recession and the delay of the Airbus A400M project.

Meanwhile, Solidarity welcomed the company's assistance to employees during the retrenchment process.

"Among other things, the company has been making psychological support available to employees since last week."

The trade union added that following the retrenchment process, the company had to motivate the its employees. "During this current upswing in the economy, the company has a golden opportunity to manage the entity successfully, improve profitability and utilise the expertise at the company to best advantage of DSA," Kleynhans said.

The notice period for employees affected by the retrenchments will end on May 9, he added.