Today's Labour News

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DenelReuters reports that state arms manufacturer Denel is holding talks with unions over voluntary severance packages, reduced working hours and salary cuts for some staff as it struggles to emerge from a financial crisis.  

Johan Botha, deputy general secretary of Solidarity, said Denel management had told union officials on Monday that staff salary payments for October and beyond were at risk because of the severe liquidity woes the company was facing.  It was reported last month that Denel had not paid managers and specialists their full salaries in September because of a lack of liquidity.  Botha said that regular staff - not just managers and specialists - would be affected by the proposed severance packages, reduced working hours and salary cuts.  “Innocent employees will now have to account for earlier mismanagement, which is still under investigation.  There is no clear indication that a strategic plan for Denel is forthcoming,” said Botha.  In April, President Cyril Ramaphosa oversaw the appointment of a new board at Denel.  The firm was embroiled in corruption allegations under its previous management.

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