UASA has written to the CEO of Denel seeking clarity on the issue of salaries on behalf of UASA members employed by the state-owned enterprise.
We know most Denel employees did not receive full salaries and were only paid a percentage of their salaries for May 2020.
No further amounts have been received or discussions held as to when the rest of the salaries will be paid to the employees.
The non-payment of UASA members’ full remuneration for May 2020 amounts to a flagrant breach of their employment contracts by Denel and is also in contravention of the relevant provisions of the Basic Conditions of Employment Act, 75 of 1997. UASA members, who were at all times loyal to Denel, find themselves in a desperate financial position as they are unable to comply with their financial obligations towards their creditors and families.
Denel invited organised labour to attend an information session scheduled for 9 June 2020, which was postponed to 12 June 2020. During this meeting, it became evident that Denel would not be honouring its outstanding contractual and statutory obligations towards its employees for May, June, July and August 2020.
UASA sent a letter of demand to Denel but we received a very unsatisfactory response and as such, Denel has left us with no choice but to launch an urgent application with the Labour Court to issue a compliance order.
We have also written to the Minister of Public Enterprises, Pravin Gordhan, to inform him of the legal action we are now undertaking against the SOE and asking for the government as a shareholder in Denel to intervene.
UASA finds it shocking and unbecoming of an SOE such as Denel to not honour their contract with their employees by not paying their salaries in full, or not at all.
For further enquiries or to set up a personal interview, contact Frik van Straten at 067 307 5312