South Africa\u2019s insolvent national arms company is seeking to fire about 13% of its workers in a bid to survive after the government spurned its plea for a bailout.<\/p>\n
Denel SOC Ltd, whose predecessor was established to bypass sanctions against the apartheid regime, has told 379 workers in its artillery, ammunition and armoured-car divisions that they could lose their jobs, according to Helgard Cronje, a representative of labour union Solidarity.<\/p>\n
The so-called section 189 notice sent to the employees is a legal step needed before cuts can take place.<\/p>\n
While idled national airline, South African Airways, was allocated R10.5 billion ($683 million) in last month\u2019s interim budget, other struggling state companies including Denel were not helped.<\/p>\n
South Africa\u2019s revenue has been sapped by the coronavirus outbreak and recurrent bailouts for state companies that were plagued by mismanagement and corruption during the nine-year rule of President Jacob Zuma who was ousted in 2018.<\/p>\n
\u201cConsultations between Denel management, labor and employee representatives have started,\u201d said Denel in an e-mailed response to questions. \u201cThe company is considering rationalizing some positions.\u201d<\/p>\n
The Pretoria-based company currently has a workforce of 2951 people including contractors and students, it said.<\/p>\n