DenelBusiness Report writes that Denel executives met on Tuesday with trade unions to discuss what steps will be taken to ensure that workers’ salaries and bonuses are paid.  

This came after the state-owned company failed to pay workers their ‘self-made’ bonuses at the end of November (workers forgo a part of their monthly salary which is then due to be paid out to them at the end of November, which essentially serves as a bonus for December).  Willie van Eeden of the United Association of SA (Uasa) reported:  “We were briefed yesterday by Denel CEO and CFO on the company’s financial state.  They acknowledged that they are facing huge liquidity problems.  They said they have met with Treasury prior to attending this meeting (with unions on Tuesday) and are expecting feedback this Thursday to get relief.”  According to Denel, the company is in need of R600-million.  Of this amount, approximately R350-million is needed to pay suppliers, while the remaining R250-million is needed to pay salaries and bonuses.  Van Eeden indicated that, although the situation was devastating to Denel employees, they would not embark on strike action.

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