Today's Labour News

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DenelBusinessLive reports that according to the CEO of Denel, Danie du Toit, the arms manufacturer will not be able to pay staff salaries for May, and wages for June and July are also in jeopardy.  

“Our liquidity is under severe pressure and we have to implement drastic measures to save the company.  It is highly regrettable that we will not be able to pay salaries this month, but we have no other options,” CEO Danie du Toit announced.  Wages for June and July were “in serious jeopardy”, Du Toit also warned in a letter to staff.  This development comes shortly after the state-owned company missed deadlines to pay over employee pension, unemployment insurance and tax contributions.  Du Toit wrote that a successful turnaround would include cutting R1bn in costs and selling noncore assets with government approval.  He has asked the parastatal’s executives to take salary cuts for the rest of the year.  Solidarity, which represents about a third of Denel’s 3,000 employees, called for an end to the lockdown so the company’s orders for export could be completed.  “What we believe is that the lockdown should be eased as soon as possible.  Denel needs to finish its export orders, but they don’t have enough staff at work,” the trade union’s spokesperson Helgard Cronje said.”  About 51% of staff are not working at all under current lockdown restrictions.

  • Read the full original of the report in the above regard by Katharine Child at BusinessLive

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