DenelEngineering News reports that trade union Solidarity on Wednesday reported that State-owned defence industrial group Denel might not be able to pay its staff their salaries for December.  

In a press release following a meeting with Denel management, the trade union expressed its “shock and concern” at the situation.  It said it was continuing talks with management, on behalf of its members.  “This is yet another telling example of a [S]tate-owned entity that is suffering severe losses as a result of mismanagement while its workforce – and the entire South Africa for that matter – have to suffer the consequences,” noted Solidarity’s Deon Reyneke.  The union warned that failure to pay salaries for this month could result in significant labour unrest and instability at the company.  In addition, the union has declared a dispute with Denel because, Solidarity affirms, the company “squandered money” that should have been ring-fenced for its employees, to pay their annual bonuses (13th cheque).  This money apparently formed part of the workers’ “cost packages”.


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