27 May

UASA’s case of contempt of court against the board of directors of Denel will be brought before the South African Labour Court on Thursday, 28 January 2021.

The case was postponed early December to afford the respondents further opportunity to file affidavits in response. The initial date was set for 27 January but has now been changed to 28 January 2021.

UASA instituted contempt of court proceedings against the directors of Denel after the state-owned weapons manufacturer did not act on a court order dated 4 August 2020 to honour all outstanding contractual and statutory obligations towards UASA members in its employ for the months of May, June and July 2020.

UASA’s application to the Labour Court is for an order to find the board members of Denel in contempt of court for failing to comply with the court order and that they be incarcerated for such period as the court deems appropriate, or that the board members be fined in an amount that the court deems appropriate. The requested order will have the consequential outcome that the board will pay the members their outstanding salaries and contribution to the respective Funds to abide with the order.

UASA is of the considered view that the Denel board members have sat idle and are now relying on liquidity challenges as the sole basis of their defense to the application for contempt of court. The board has failed to specifically address why payments made by Denel after 4 August 2020 were not prioritized and channeled to effect payment of what was required in terms of the court order.

Denel has now been in default for almost a year of unpaid salaries and benefits to its employees.

For further enquiries or to set up a personal interview, contact Stan Mazhindu at 065 1700 162.

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