Today's Labour News

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DenelBusinessLive reports that cash-strapped, state-owned arms manufacturer Denel says that although it is still finalising a plan to tackle its liquidity challenges, it will pay salaries and suppliers in January.  

With the deadline for the company’s payroll looming, staff and service providers are concerned that salaries and bills will not be paid.  Denel received an emergency government loan guarantee of R580m in December to pay its 4,000 employees and suppliers.  However, it is unclear how the company will raise funds to fulfil its obligations.  The Treasury provided the guarantee to Denel to resolve its "immediate funding crisis", but required that parastatal needed to put a credible strategy in place.  The United Association of SA’s Willie van Eeden has requested a meeting with the company’s management to hear how it plans to pay workers and suppliers.  He said the union was in the dark about where Denel would get the funds.  Although Denel did not answer questions, spokeswoman Pamela Malinda did say it would pay salaries and suppliers "within agreed terms".

  • Read this report by Theto Mahlakoana in full at BusinessLive


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