Reuters reports that trade union Solidarity said on Tuesday it had applied to the Labour Court to challenge state arms manufacturer Denel over its failure to pay salaries in full.  

Denel is one of several struggling state enterprises the government has been keeping afloat with bailouts but which have been battered by the fallout from the coronavirus pandemic.  The company is awaiting a R576 million bailout announced in February’s national budget speech.  Solidarity said in a statement that some employees only received 20% of their salaries for May.  It demanded that Denel pay outstanding salaries and payments to third parties – a reference to Denel missing payments to its employee pension fund and some tax obligations – by 3 July.  The Labour Court will apparently hear the case on 30 June.

• Read the full original of the report in the above regard by Alexander Winning at Moneyweb

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