Denel Pretoria Metal Pressings (PMP) has been able to pay its staff their outstanding December salaries and a portion of thirteenth cheques.
In an infogram to employees dated 8 February, PMP CEO Phaladi Petje shared some “positive developments” in spite of work stoppages and the resultant negative effects on customers and sales.
He told staff that latest cash collected enables PMP to pay the outstanding 65% for December salaries, minus a once off payment of R2 750.
An amount of 25% of the 13th cheque will also be paid today (9 February).
In a previous infogram dated 21 January 2022, Petje told staff that “due to no or limited working activities taking place as from the 7th of December, no cash could be generated to pay the outstanding salary for December 2021 and salaries for January 2022.”
This week’s infogram implored all employees to return to work in order to generate cash to pay outstanding salaries as well as the outstanding 13th cheque portion. “Execution of projects must be a priority to enable PMP to catch-up on sales and salaries,” Petje stated, adding that “the efforts to maintain salary payments as planned is very much dependent on operational activities being executed as well as cash collected timeously.”
The broader Denel Group owes staff in excess of R650 million in salaries and owes suppliers R900 million. Denel will be in court on 10 February where it faces off against trade unions over unpaid salaries.
PMP has fared better than some other Denel divisions like Land Systems and Dynamics, whose staff have received no or partial pay for over a year.
