UASA is in the process of instituting legal proceedings against Denel as the state-owned defence firm had failed to pay its employees’ salaries on the agreed date; Monday, 25 May 2020.
Denel is therefore in breach of its employment contracts. The SOE indicated that it would also not be in a position to pay salaries for June and July.
Denel has been in a precarious financial position since at least late 2017 when it could not make full salary payments. The financial crisis in the company dragged on until the Department of Public Enterprises (DPE) assisted with an R1.8b bailout in April 2019. Now, barely a year later, it is in the same position, asking for a further R576m bailout, while being unable to fulfil its responsibilities towards its employees.
UASA will not allow its members employed at Denel to be victims of this financial mismanagement any longer. Our members cannot afford to be without income for a single month, not to mention for three or more.
They have a right to be remunerated for their labour as per their employment contract.
For further enquiries or to set up a personal interview, contact Stanford Mazhindu at 074 978 3415.