Union concerned by Denel’s cash flow

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Trade union UASA has expressed concern that Denel may not have the money to pay the salaries of its employees.

Andre Venter, spokesperson UASA, said earlier this month that, “It is our understanding that Denel Corporate issued an instruction to all its divisions to ‘do the best they can’, with the finances allocated to them so as to ensure that employees at least receive their normal salaries for the November 2017 pay month. While salaries have since been paid, the payment of the 13th cheques of employees at various Denel entities was withheld.
“The so-called ‘13th cheque’ is, in fact, a self-funded savings initiative from Denel employees, which they use as a bonus in December of each year during annual shutdown.”

UASA said that Denel, for the second year running, indicated to employees that performance bonus payments have to be postponed. After much deliberation and a mandate from union members, Denel Corporate committed to make such payments over a six month period – so as to make funds available on a monthly basis.

UASA raised some other concerns regarding Denel, including trouble paying suppliers, which impacts on the finalisation of contracts, and the fact that less than 60% of the Denel target for available cash has been secured.