Trade union Solidarity has welcomed State-owned defence group Denel's decision to grant employees an across-the-board 5.5% wage increase, backdated to April 1.

The union says this is a meaningful step towards providing much-needed recognition to employees who have endured significant uncertainty, challenges and sacrifices at Denel over many years.

Solidarity defence and aviation coordinator Derek Mans says the agreement sends an important message to employees who continued doing their jobs under difficult circumstances and tried to keep the arms manufacturer afloat.

“Denel still faces serious financial and management challenges, and we recognise that there is still a long road ahead. However, this agreement is an important step towards restoring employees’ dignity and recognising people who, despite years of uncertainty, have remained loyal and continued to do their work,” he comments.

Solidarity further believes the agreement highlights the union’s willingness to work constructively with Denel as an employer, and particularly its determination to protect and advance the interests of its members as employees.

“Our approach remains unchanged – one of cooperation where possible, provided that it protects our members’ interests. At the same time, we want to support realistic and workable solutions for Denel’s future.

“We are cautiously optimistic; however, practical and implementable decisions still need to be taken regarding the company’s direction and future,” says Mans.

Solidarity further believes there are still signs that divisions within Denel can succeed. One division recently delivered a strong financial performance.

“These developments create hope and room for constructive and future-focused discussions about Denel. South Africa still needs its strategically essential defence sector, but this requires responsible management, credible partnerships and difficult decisions,” says Mans.