Solidarity files application against Denel over salaries

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Trade union Solidarity has filed an application at the Labour Court against failure of state arms manufacturer Denel to pay workers’ salaries in full.

Denel has been kept afloat by government bailouts but these have been stalled by the economic impact of the COVID-19 and the state owned entity is still awaiting a R576 million bailout which was announced in February during Finance Minister Tito Mboweni’s budget speech.

Solidarity says in May workers were only paid 20 percent of their salaries. The case will be heard on June 30, 2020.

Solidarity Chief Executive, Dirk Hermann says, “Denel also indicated that salaries for June and July were also in jeopardy. Denel has also failed to meet its statutory implications in respect of its employees by not paying income tax and other deductions to third parties since april. This is not a COVID-19 problem but years of poor management.”