Denel struggles to pay salaries due to financial dilemma - Solidarity

25 June 2019

Solidarity heard with shock today that Denel can only pay 85% of their employees’ salaries this month due to cashflow problems.

This follows after Denel undertook in December 2018 to indicate by the 15th of each month whether or not salaries can be paid. “We are concerned that this tendency has now started again because there was an expectation that the non-payment of salaries was something of the past,” Botha said.

Botha said further that in view of the current challenging economic climate, it is very traumatic for employees to be uncertain whether they will actually receive their salaries the next month. “The impact on employees and their families is a big concern and leads to unnecessary pressure and stress,” Both said.

“We request Denel to be more cautious with the communication of sensitive information which has a direct impact on the lives of their employees,” Botha concluded.

Issued by Johan Botha, Deputy General Secretary: Solidarity, 25 June 2019