Denel has said it welcomes the report by Armscor on the Denel Land Systems (DLS) employment equity compliance status on the flagship Hoefyster project that will deliver Badger armoured vehicles to the South African Army.
“The Hoefyster Employment Equity Compliance Assessment (HEECA) Report was commissioned by the previous management of DLS, so it’s something we were looking forward to. We welcome its findings in pointing out important areas where we need to improve in relation to the appointment and promotion of black South Africans in the programme,” said Ismail Dockrat, the acting CEO of Denel Land Systems.
Accelerated transformation with regards to employment equity is one of the key priorities identified by the new Board and executive management, Denel said on 31 August.
The report will be used as a baseline by DLS Management to devise an action plan to address the identified findings and recommendations. It will ultimately be shared, prior to implementation, with all employees including organised labour.
“Management acknowledges that measures need to be urgently put in place to address the concerns raised in the HEECA report. Despite significant progress in transforming the company, there are gaps but Denel remains committed to ensuring that the company is transformed in terms of demographics and the business for long term growth and sustainability,” said Dockrat.
DLS is currently undergoing a turnaround process whose primary mandate is to ensure the implementation of a well thought through, well consulted and well communicated turnaround strategy with clearly defined goals that will set DLS on a trajectory of sustainability, growth and prosperity, Denel said.
“Simply put, this means that the company is embarking on a robust process to bring about change and that includes addressing issues of transformation. The timing of the HEECA report is therefore perfect,” Dockrat said.
The new Denel Board has already put in place a comprehensive Governance turnaround strategy and a number of new appointments to executive positions will be made soon. This will bring stability to the organisation and enable management focus on core business delivery in programmes such as the Hoefyster.
The Armscor report provides useful analysis of the state of employment equity while at the same time offering recommendations on how these issues can be addressed.
“Denel is firmly committed to transformation and to meet the objectives of the Employment Equity Act. We will continue to liaise with Armscor on the required steps to further transform the organisation and will also engage with organised labour, unions, employee organisations and industry bodies to ensure we reach workable solutions,” said Denel Acting Group Chief Executive, Mike Kgobe.