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Solidarity welcomes the High Court ruling that the arms manufacturer Denel must fulfil its statutory obligations to its employees on an urgent basis. Denel will now be compelled by the court to pay over the unemployment insurance and the taxes deducted from employees’ salaries over several months.

It is a major victory for Solidarity and the Denel employees. However, it is regrettable that we had to go to court just to draw Denel’s attention to payments that it should have made a while ago,” said Anton van der Bijl, head of Solidarity’s Legal Services.

Solidarity’s urgent application came after the struggling arms manufacturer announced earlier that it was only able to pay a certain portion of its employees’ salaries for June and July. Certain statutory compulsory payments such as PAYE, UIF and the skills development levy were indicated on salary slips, but have not been paid over.

Johan Botha, deputy general secretary of the professional industry in Solidarity, said although it is a major step in the right direction for the greater fight against the misuse of taxpayers’ money, Solidarity is still concerned about Denel’s continued survival.
 
Solidarity said that the steps against Denel form part of a much greater campaign – namely Solidarity’s lawful tax protest. This protest includes at least six legal actions against state-owned enterprises and tax plunderers.

Issued by Solidarity