Denel Land Systems once again unable to pay salaries

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Employees at Denel Land Systems will once again go without salaries, as the division does not have enough cash to pay staff for September.

This is according to Denel Land Systems (DLS) Interim CEO Phaladi Petje, who in a 22 September memo to employees stated that “DLS has not managed to generate enough cash to pay salaries for September 2021. The prognosis for the next two weeks is also not promising. We will communicate should there be positive changes.”

As with many other Denel divisions, staff at Denel Land Systems have not been paid for much of the year. In a July memo, Petje told staff the company could not pay June or July salaries but remained positive the situation would improve in the next few months.

Many staff at Denel’s divisions, like Land Systems and Dynamics, haven’t had a proper salary in more than a year, prompting many to leave. Staff earlier this month took Denel to court to try and force the state-owned defence conglomerate into business rescue in the hope that that might see the return of a regular paycheque.

Employees are paid according to revenue earned – and paid to – the various divisions and associated companies. As an example, this saw Denel Land Systems employees paid a fifth of their monthly salary in May.

In Petje’s most recent memo, he cautioned staff that “DLS is under severe pressure due to continuous loss of critical skills and core capabilities. As a result, departments are forced to adopt different working models which among other challenges leads to employees acting in numerous roles, secondments, etc. In the view of these challenges, departmental heads are urged to ensure that temporary working arrangements do not disrupt business operations. We are all aware that a new structure will be effected as soon as the approved Operating model kicks in.”



The Interim CEO also revealed that the South African National Defence Force (SANDF) is guarding the premises, which is a national key point. “Their responsibilities will among others, include guarding the premises and controlling access points. Thus, security protocols will be strictly applied in all instances.”