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Liberated Metalworkers Union of South Africa (LIMUSA) condemns the ongoing failure by Denel to pay salaries that were due to workers on 25th May 2020.  This    unilateral action by the employer of failing to pay salaries has resulted to no income for all Denel employees during this time of need in the light of COVID-19 pandemic.    

We are disappointed on the  reckless manner in how  this matter has been handing by Denel management led Group CEO Mr Du Toit as there was no proper consultation with organised labour on the matter. The company further failed to apply on time for COVID-19 relief funds as they only started to apply on 15th May 2020 which could has assisted in the situation. 

LIMUSA is vindicated on what we described in June 2019 as self-inflicted crisis by Denel executives led by Mr Du Toit in his capacity as Group CEO. While we concede that Denel has liquidity issues but some of those operational divisional executives and senior management who were part of the causes of this current liquidity issues are still Denel employees and no consequential management has been enforced.

We further disturbed that the Mr Du Tiot failed to respond to a letter by LIMUSA on 20th May 2020 regarding non-commitment by Denel on payment of salaries for May, June and July. As the union we still awaiting for the response and committed to engage on the matter.     

We also call on the Minister of Public Enterprise to intervene on this matter and further find a lasting solution to the Denel crisis. It is also our concern that Government hostility measures has a direct impact in sustainability of Denel, this was evident on the report tabled Parliament portfolio Committee on Defence and Military Veterans on 27th May 2020. 

This ongoing action by Denel is in fact unilateral change in conditions of employment and as such constitute unfair labour practice. Having taken to account section 32(3) of Basic Conditions of Employment Act, we demand that Denel management to pay the overdue salaries to all worker by no letter than 2nd June 2020 or the union shall explore appropriate legal recourse on behalf of our members. 

We reiterate our call for Mr Du Toit to resign because he continues to fail to bring about any positive results in turnaround Denel. 

Issued by The Liberated Metalworkers Union of South Africa