Denel employees still uncertain about future salaries

26 June 2019

Although an anonymous credit provider has emerged to assist Denel with the payment of the outstanding portion of its June 2019 salary bill, it is not a sustainable solution. Solidarity remains extremely concerned about Denel’s short-term financial position.

This is the situation after Public Enterprises Minister Pravin Gordhan announced during the debate on the state of the nation address on Tuesday evening that Denel’s employees would receive their full salaries after an anonymous credit provider stepped in to provide relief for Denel’s cashflow problems. He did not say when the employees will receive their outstanding salaries, but currently it seems as if the outstanding salaries will be received by Friday.  

There are talks of a bailout by the end of September or October 2019, but there is no certainty about the cashflow challenges facing Denel and possible solutions for that in the meantime.

“Denel did not communicate clearly on this matter at all. This led to great uncertainty among employees, which, of course, could have long-term consequences for staff retention for Denel,” said Solidarity Deputy General Secretary Johan Botha.

Denel CEO Mr Danie du Toit confirmed that communication was a problem, but he gave assurances that this would improve in future. He invited the trade unions to meet with him on a monthly basis to receive the latest information on the progress being made.

“It is gratifying to see that the overwhelming media reaction has resulted in the necessary pressure on the Denel management and the government to obtain finances for the outstanding salaries so quickly,” Botha added.

Finally, Solidarity would like to thank Mr Du Toit and the new council for their prompt action and the changes that are already visible, but we still want to call on them to ensure better communication in future.

Issued by Johan Botha, Deputy General Secretary, Solidarity, 26 June 2019