You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Denel can’t honour court ruling on salaries – letter

Update due by the end of next week.
Image: Siphiwe Sibeko, Reuters

Struggling state defence firm Denel told trade unions on Friday that it cannot honour a court ruling that it should pay outstanding salaries by Friday, a letter from Denel’s lawyers to the unions’ lawyers seen by Reuters showed.

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

The Labour Court on Tuesday ordered Denel to pay workers outstanding salaries for May, June and July, as well as meet statutory obligations, such as paying into its employee pension fund, by Friday, after two unions lodged a complaint.

“Our client has instructed us that, as indicated previously, it is unable to comply with the court order today. … Our client requests that your clients grant it an indulgence to enable it to work on measures to raise funds,” Denel’s lawyers wrote in the letter, adding that Denel would aim to give an update by no later than the end of next week.

Denel said in a statement that it remained committed to meeting its obligations and paying outstanding salaries as soon as possible.

“The shareholder and the Denel board are relentlessly working to resolve the short-term challenges the company is facing,” the statement read.

Solidarity, one of the unions that brought the court case over salaries, will launch contempt of court proceedings next week if Denel does not pay outstanding salaries on Friday, its defence sector coordinator Helgard Cronje told Reuters.

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

COMMENTS   13

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

What an Africa farce. All the players especially the unions and the court have clearly lost touch with reality. This happens when one believes the corrupt ANC propaganda instead of using common sense. worthy of a Zim award.

Blame WMC, it seems to be the only excuse for a failed corrupt useless ANC led Government

And whilst on the blaming game, don’t abolish BEE, it’s the one thing that’s assisted the minority to become entrepreneurs and self sufficient

So whilst government loots and turns the entire country into a rat hole of filth and destruction, the minorities will do what they have always done

Survive!

Survival, inventions, entrepreneurship and creative thinking is in their DNA

They were taught well!

Why not borrow it from the taxpayer? Now that’s a great idea!

Alternatively cut your cloth guys, we’re running out of money!!!!!

Did you know Denel management including the CEO had been working voluntary for only 20% of their salaries for months? It’s Gordhan and the Public Enterprises department that must not only cut their cloths, but catch a wake-up.
Unlike SAA, Denel isn’t some vanity project and its staff is now highly exposed financially as they haven’t been paid for months. Gordhan and his cronies can take SAA money for Denel; SAA staff have milked the system, not Denel

Wow????

Maybe they have a ” liquidity” problem? HU? This must have escaped the participants and the “Judiciary”

So if you want maanie go to the right court and LIQUIDATE them???????

You might even get 2 cent to the Rand.

Before the ANC came into the picture, Denel manufactured weapons that defeated Fidel Castro and the Russians in Angola. Denel manufactured the best anti-mine troop carriers, the Rooikat Armoured Combat Vehicle; Ratel Infantry Fighting Vehicle; Casspir and Mamba Armoured Personnel Carriers as well as the magnificent 11 ton G6, sometimes denoted as the G6 Rhino, a South African mine-protected self-propelled howitzer. It was developed as a turreted, self-propelled variant of the G5 howitzer series, mating the gun to a six-wheeled armoured chassis.

Now, after 25 years of collectivist rule, Denel is a heap of rusted scrap metal. Where the old Denel was the epitome of engineering excellence, the new Denel is the epitome of collectivist ANC stupidity and incompetence.

Every socialist in South Africa should accept personal responsibility for what happened to Denel, SAA and Eskom, but socialists never accept any responsibility for anything, because the accountability lies with the collective. These shamefully corrupt and bankrupt entities are the manifestations of the communalist mindset.

Just one correction Sensei. The Casspirs are used by the SAPS. All their armoured vehicles are manufactured by the CSIR.

Thank you, Henry. The design was ahead of its time and it served as the template for the MRAP of the US Marines. South Africa had the best engineers in the world at the time. We had a lot to be proud of. Cutting-edge equipment and well-equipped and well-trained troops with a high level of motivation and morale. The SADF was a world-class fighting force indeed.

It is a real pity that all this potential is wasted and neglected by the incompetence and criminality of the ANC ruling elite. They do not deserve any respect, and they don’t get any.

Time to retrench 100 % of staff. Problem solved.

They’re already bankrupt – Solidarity should have put them in business rescue very long ago.
Danie du Toit the CEO also seems to see the futility; let Gordhan take his money and retrench the staff!

Liquidate them and auction their stuff.i wanna buy a moerse machine gun.lol

Ha ha. Who is that wise guy who said “This is what happens when an unstoppable force meets an immovable object”. What happens now?

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: