Denel/Solidarity salaries court battle continues


The ongoing saga that is the legal battle which sees beleaguered Denel facing off against labour organisation Solidarity makes yet another court appearance in February.

The Centurion-headquartered trade union was the first representative labour group to take on the State-owned defence and technology conglomerate for non- and partial payment of salaries and employee benefits. It was followed by the United Association of SA (UASA) and NUMSA (National Union of Metalworkers of SA).

Derek Mans, Solidarity sector co-ordinator for defence and aerospace, this week confirmed to defenceWeb the union and the ailing SOE (State-owned enterprise) will be in court on 10 February. This time it’s for outstanding salaries from the eighth month of last year to date.

Two days before an auction of attached Denel assets set for 17 September last year, Denel, according to Mans, “managed to settle the net salary portion of all Solidarity members”. This totalled R4 646 774,13 went to Solidarity members on the personnel strengths of Denel Dynamics and Denel Land Systems (DLS).

The auction was to sell off assets valued at R1.3 million attached by the Sheriff in terms of court orders granted to Solidarity and followed a July High Court hearing when the trade union sought a ruling to hold Denel directors personally liable for salary non-payment. This was for May to July last year Mans said, adding salaries were at the time settled for some Denel divisions “but not all”.

Denel owes staff in excess of R650 million in salaries and owes suppliers R900 million.