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Denel, the state-owned arms manufacturer, announced yesterday that it was engaging with contractor Saab Grintek Defence to reach an ’amicable outcome’ regarding its bid to have Denel put into liquidation over unpaid debts.
NUM condemns Denel Land Systems failure to pay salaries
By Mayibongwe Maqhina
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Cape Town - The National Union of Mineworkers (NUM) has condemned the failure by Denel Land Systems to pay the salaries of its workers
Reports emerged on Sunday that Denel Land Systems said that honouring its wage bill in the next few months would be difficult as its cash problems continued.
Earlier reports indicated that, on Friday, chief executive Makhathini sent a memorandum to staff, saying the employees would get a net payout of just 20% of their May salaries along with medical aid cover and the risk proportion of pension contributions.
Denel salary fiasco shows it should be placed under business rescue, urgently - DA
By Mayibongwe Maqhina
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Cape Town - The DA on Monday said the decision by Denel to only pay its employees 20% of their May salaries was proof that the state-owned entity should be placed under business rescue as a matter of urgency.
DA MP Michele Clarke said there was clearly no other way forward for the arms manufacturer which was fast becoming commercially unsustainable.
“The DA is of the view that should a business rescue process not to be initiated, the entire entity will collapse. This will not only compromise South Africa’s national security but also the thousands of jobs in its value chain,” Clarke said in a statement.
Denel to cut employees’ April salaries Updated
Sibahle Motha
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State-owned aerospace and military technology conglomerate Denel will not be able to pay full salaries to its aeronautics division at the end of this month.
Pic Courtesty: Facebook
Trade union’s Solidarity s Helgard Cronjé says the aeronautics division will only pay between 40 to 100% of salaries. Some of the divisions pay different salaries because they have been given the responsibility of their own finances. Denel Aeronautics, for example, this month will be paying between 40-100% depending on the earnings of the individual.
The state-owned enterprise has been plunged into a liquidity crisis due to corruption and mismanagement.