The dire financial situation at Denel has not improved after more than a year of empty promises to workers and embarrassingly, employees at Denel Dynamics have once more been informed by Chief Executive Officer Sello Ntsihlele that they will not receive their full salaries for July, trade union UASA has said.
This, while the Labour Court will sit on 23 July to review Denel’s compliance of outstanding employment contractual matters for May, June and July 2020, namely Pay As You Earn, UIF and pension/provident fund payments.
“Despite long months of meetings, negotiations and promises, and Denel workers reporting for duty despite non-payment, the state-owned enterprise (SOE) is still failing to meet its contractual obligations to workers,” UASA said.
The trade union maintains that Denel has not taken UASA into its confidence as to how it intends to resolve its financial and liquidity issues, “despite our members having bent over backwards to accommodate the SOE.”
“How Denel still expects workers to report for duty is beyond imagination. Many of the affected workers are breadwinners with bills to pay and families to feed but are prohibited from doing so because Denel continues to fail them on paydays.
“UASA has repeatedly called on government to remedy the financial disaster at the SOE, but the situation has remained unchanged. UASA members employed at Denel are scraping the bottom of the barrel, surviving on the bare minimum while in the service of a sinking ship.
“UASA demands that the various stakeholders act expeditiously to improve this disheartening situation immediately. Government must intervene now and come up with a final solution; Denel’s creditors must pay up without delay and clients with outstanding bills must settle their accounts.
“The state of affairs at Denel is long past its sell-by date and is an embarrassment to the state and South Africa as a whole,” UASA concluded.