South African State Arms Maker Fires Workers After Bailout Snub

South Africa’s insolvent national arms company is seeking to fire 13% of its workers in a bid to survive after the government spurned its plea for a bailout, Bloomberg News reported. Denel SOC Ltd., whose predecessor was established to bypass sanctions against the apartheid regime, has told 379 workers in its artillery, ammunition and armored-car divisions that they could lose their jobs, according to Helgard Cronje, a representative of labor 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, South African Airways, was allocated 10.5 billion rand ($683 million) in last month’s interim budget, other struggling state companies including Denel were not helped. Read more