Statement by Stanford Mazhindu, spokesperson of the trade union UASA:

UASA has written to Monhla Hlahla, chairperson of the Denel board, expressing our dismay at and rejecting CEO Danie du Toit’s letter regarding Denel’s unilateral decision to not pay its employees for 3 months. 

Until meaningful engagements have taken place with the company, UASA expects normal salary payments to all our members.

The problems at Denel are by no means a new development and it boggles the mind that the state-owned enterprise waited to the last minute to make such an important announcement.

In April 2019 Denel received a cash injection of R1.8bn from the Department of Public Enterprises. To date, there is no clarity as to how the money was spent.

Various meetings have taken place between organised labour and the SOE, and it is apparent that our concerns regarding Denel’s financial situation were not being taken seriously. Denel has indicated that it is in constant discussion with banks and other institutions for assistance.

UASA takes note that the current Covid-19 pandemic does not make it easier for Denel to ensure income generation, but we are of the opinion that such could only be used as a mere excuse at this stage, noting the history and performance of Denel over the last 24 months.

Management has to accept responsibility for the situation at Denel. Taking the “easy way out” via Section 189 notices and cutting staff simply will not work. 

UASA eagerly awaits Denel’s response to our concerns.

Issued by UASA