Government must help Denel – UASA

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Government, in the form of at least three departments, should be called on to provide financial assistance for State-owned Denel given the lack of funding for any turnaround plan a Gauteng-based trade union said this week.

The call was made by Abigail Moyo speaking for the UASA (United Association of SA) and FEDUSA (Federation of Unions of SA). The labour organisations want the departments of Public Enterprises; Trade, Industry and Competition and Defence to “find financial assistance” for the defence and technology conglomerate which recently had the unfortunate appellation “decaying” added to its name by a Democratic Alliance (DA) parliamentarian.

“Denel cannot be allowed to fail as it is core to the Defence and Aerospace Masterplan adopted by government,” Moyo said in a statement.

FEDUSA secretary-general Reifdah Ajam, UASA chief executive Jacques Hugo and other union representatives discussed issues affecting UASA members and other workers at the embattled SOE with Denel acting CEO William Hlakoane and Department of Public Enterprises director-general Kgathatso Tlhakudi.

UASA is hopeful engaging relevant state departments that are part of the Defence and Aerospace Masterplan will culminate in a solution for the SOE’s woes.

For the past year, Denel employees have survived on hope going on short salaries. According to Moyo Denel recently informed employees of restructuring as part of a turnaround plan.

A further discussion with organised labour is scheduled and hopefully the strategic plan will be tabled for input.



Last week, another trade union spoke out in favour of Denel continuing to operate. Solidarity, with a court order to attach Denel assets in is favour, had and wants to continue meeting Denel management to hammer out a plan that will ultimately see the DOE return to profitability.