Denel confirms cash crisis, workers still without their self-funded bonuses

13 December 2017  

State-owned company Denel today confirmed its cash crisis and admitted that it was defaulting on supplier payments and 13th cheques to employees.

Denel CEO Zwalekhe Ntshepe said in a meeting with organised labour today that the company is engaging with Government and other stakeholders to avert a situation where they will be forced to delay salary payments for December 2017. Meanwhile, it has become known that management are receiving their 13th cheques regardless of the workers’ plight.

UASA broke the news of the scandal 10 days ago when frustrated Denel workers informed the union of their predicament. UASA demands that Denel finds the money to pay the workers’ bonuses, particularly those bonuses self-funded by staff who agreed to save a portion of their salaries every month in order to receive that amount as a 13th cheque over the festive season.

UASA sees these despicable actions of Denel as nothing less than fraud and theft. Our members and other workers at Denel have earned and/or saved for their bonuses and we insist that the company find a way to correct the situation ASAP.

The Denel board should resign, and so should Public Enterprises Minister Lynne Brown.

UASA will not rest until Denel management and the Department of Public Enterprises find a way to do justice to our members and other workers.

Issued by Andre Venter, Spokesperson, UASA, 13 December 2017