Denel ordered to pay outstanding salaries

It was not immediately clear where Denel would find the money, given its severe cashflow constraints.
Image: REUTERS/Siphiwe Sibeko/File Photo

South Africa’s Labour Court on Tuesday ordered state defence firm Denel to pay workers outstanding salaries for May, June and July by no later than Friday, August  7, a copy of the court judgment showed.

The case against Denel was brought by two trade unions, Solidarity and UASA, on behalf of their members after the weapons manufacturer did not pay salaries in full.

Denel, which makes equipment ranging from armoured vehicles to missiles, has struggled to pay staff salaries amid a liquidity crisis aggravated by the Covid-19 pandemic.

It is one of a number of struggling state enterprises the government has been keeping afloat with bailouts.

A Denel spokeswoman said the company was preparing to comment in a statement.

As well as paying outstanding salaries, Denel will have to meet statutory obligations such as making payments to its employee pension fund, which it has also struggled to do in recent months.

It was not immediately clear where Denel would find the money, given its severe cashflow constraints.

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The unions have gone to the wrong court. labour court don’t do liquidations.

So… can’t pay salaries and can’t liquidate an SOE… so it can carry on then. Staff can rather take home some of the equipment, at least get something in severence pay.

In my myopic view Denel should be allowed to sell weapons. They are over regulated and politically constrained. An arms business sells arms and must be profitable and not politically correct. Even if those arms are used in Africa. As long as arms laws are followed then the politics don’t matter. We cannot embargo Denel ourselves through African dream politics.

This is all a big farce by delusional unions.

It’s all good and well the court ordering Denel to pay salaries and pension commitments. However, if they don’t have the funds to do so perhaps the court would like to explain exactly how they envisage this happening?

SAA in liquidation, Eskom totally bust, SABC broke, Denel bust, ACSA soon going to be bust, Sanral e-toll fiasco.

Doesn’t take a genius to spot the trend here. If the government runs it, it’s a bust.

Sadly for us, the government is also running the country and good old RSA is also a bust.

Seems our rescue will be EWC, more BEE, and less jobs for foreigners.

Not going to work. Quite the opposite actually

End of comments.

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