26 Jul

UASA Media Release: 26 July 2022

Statement by Abigail Moyo, Spokesperson of the trade union UASA:

Judge Andre van Niekerk ruled today in the Labour Court that state-owned enterprise Denel is ordered to effect payment of the outstanding remuneration for the period 1 August 2020 until 31 May 2022 for the respective members of UASA within 14 days from today’s Court Order. The Judge ordered Denel to also pay overall outstanding medical aid contributions within 14 days from the date of this Order.

Additionally, Judge van Niekerk ruled that Denel is ordered to pay overall outstanding payments for the period 1 August 2020 until 31 May 2022 to the Pension Fund of UASA members within 6 (six) weeks from this date as per the Court Order.

Interest on the outstanding remuneration at the prescribed interest rate calculated from when UASA members became entitled to payment of their remuneration to the date of final payment was moreover ordered by the Court.

Denel was furthermore ordered to deduct and pay over all outstanding payments owing to the South African Revenue Service in respect of UASA’s members by no later than 31 May 2023, or such earlier date as Denel may be required to do so by the South African Revenue Service.

These orders are a great victory for UASA and its members after a lengthy legal battle of more than two years against Denel to specific performance of Denel’s contractual and statutory obligations towards UASA members employed by Denel.

Denel’s Board of Directors, an accounting authority, had a duty of utmost care to act with fidelity, honesty, and integrity and in the best interest of the public entity in managing its financial affairs.

Denel did not comply with a previous Court Order to pay UASA members their outstanding remuneration. Thus, UASA was forced to apply for Denel and its directors to be held in contempt of Court, while Denel and its directors relied on Denel’s liquidity challenges as an excuse for not complying with the Court Order.

UASA members rendered their services to Denel despite the company’s breach of its contractual and statutory obligations towards them. The hardship suffered by UASA’s members continued on an ongoing basis.

The court order was granted because UASA has shown that Denel will receive sufficient Funds from the Denel Medical Trust Fund within the next month, enabling the state-owned enterprise to comply with its obligations toward UASA members.

UASA had the option to obtain a writ of execution to dispose of assets of Denel to pay its members. Such a cause of action is highly irresponsible in that the means of production are taken away, which will cause the total demise of Denel.

UASA always acted in the best interest of its members to save jobs. It is of utmost importance for UASA that Denel succeeds as an employer.

For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.

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