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UASA has brought an urgent Labour Court application against Denel for Tuesday, 5 April 2022. 

UASA seeks that Denel be ordered to 

·       Honour all outstanding contractual obligations and effect payment of UASA’s members’ full remuneration from 1 August 2020 to date. 

·       Deduct and pay overall statutory and other contributions deductible in terms of the employment contracts and relevant legislation from August 2020 to date.

·       Make payment and effect within 14 days from the date of the court order. 

UASA is seeking the court’s intervention in the light of the expected R1 billion pay-out Denel will receive from the Denel Medical Trust Fund. On 24 February this year, the High Court ruled that a variation of the fund deed allows for the excess trust funds to be allocated to Denel. 

As the state-owned enterprise owes workers almost R830 million in unpaid salaries, it is only logical that the money be used to pay all outstanding salaries owed to employees.

UASA members cannot obtain IRP5s or tax compliance certificates from SARS due to their unpaid taxes. Some of them had to pay medical expenses from their own pockets due to the non-payment of contributions to their medical funds by Denel. 

UASA urges Denel to put its employees out of misery and pay what is due. UASA members have survived a hand-to-mouth existence; some have lost their properties and cars due to financial strains while other workers have been unable to pay their children’s school fees. Denel is acting unlawfully and thousands of its employees and their dependants are suffering on a daily basis. 

The breach of the contractual and statutory obligations by Denel causes UASA members harm and hardship on an ongoing basis. It has been almost two years since they have last received their full remuneration. Despite these excessive hardships UASA members still continue to work.

Under the circumstances, UASA has no alternative but to approach the Labour Court for relief on behalf of its members. 

Issued by UASA Spokesperson Abigail Moyo