Today's Labour News

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DenelTimesLive reports that state-owned arms manufacturer Denel has told unions it will have money to pay employees their salaries on 22 December‚ after treasury granted it a debt guarantee.  

This emerged after unions met with Denel management on Friday to determine whether the 4,000 staff members would be paid after Denel admitted it was running out of cash.  The treasury guarantee will allow Denel to ask banks next week to further extend its credit.  Yet, Solidarity manager Deon Reyneke said despite that the guarantee‚ the union did not know if Denel would get a bank loan in time.  "We hope they will get a loan by next week‚ in order to pay on the 22nd," he said.  Reyneke also indicated that they had asked Denel management where the money it earned had gone.  "We did ask.  It is still a mystery‚ [as to] where the money has gone."  He also asked:  "What are [Denel's] contingency plans?  They can't live on a loan [long term].  What are they going to do?"

  • Read this report by Katharine Child in full at TimesLive

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