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The Citizen reports that at least one trade union has threatened legal action against arms manufacturer Denel for the non-payment of statutory contributions deducted from salaries.
This was against the backdrop of the state-owned company’s liquidity crisis, which led to late salary payments last month. Solidarity, which represents 1,200 of Denel’s approximately 4,000 permanent staff, was in talks with its legal department on Monday after demanding clarity from management on the non-payment of workers’ pension contributions last month. On Monday, Denel’s board met with the Denel Retirement Fund and unions expressed the hope that that would bring clarity as to how long workers would have to wait for the late payments. “We gave management a heads up this morning that we need feedback regarding that meeting before noon today, failing which we will be meeting with our legal team to discuss whether to proceed with some form of legal action,” said Solidarity’s Johan Botha. He added the union was concerned this might not be the last time the company struggled to pay salaries because there “may be a light at the end of the tunnel, but it’s not clear how long that tunnel is.” Denel spokesperson Pam Malinda said the company was still “facing challenges”, despite continuously engaging with the department of public enterprises on its liquidity crisis. The United Association of SA (Uasa) would not comment on whether it would institute its own legal action.
- Read the full original of Simnikiwe Hlatshaneni’s report on the above at The Citizen
Get other news reports at the SA Labour News home page