Solidarity and Denel reach a settlement; hundreds of millions paid to Denel employees

31 July 2022

Denel has paid overdue salaries of approximately R300 million to Solidarity members and other employees. A settlement has also been reached with Solidarity on the R90 million owed to Solidarity members. 

This comes after Solidarity obtained a court order to seize Denel’s assets and bank account. Solidarity was due to proceed with the seizure of Denel’s assets and its bank account on 3 August. 

“We are grateful that this salary payment has been made. It is going to bring huge relief to thousands of people. We are getting so many messages expressing gratitude. One member wrote that he can now pay his child’s overdue school fees as a proud father. However, it is sad that there had to be so much suffering before members received the salaries that were due to them,” Solidarity Chief Executive Dr Dirk Hermann said. 

According to Solidarity Deputy General Secretary Helgard Cronjé, a settlement has been reached with Denel. Solidarity’s warrants of execution will be withdrawn, and seizure of assets will not continue. Denel employees and Solidarity members will then receive all overdue salaries. 

The payment is funded from surpluses of a post-retirement medical provision fund. Those are surpluses that will not affect benefits. There should also be sufficient funds to pay salaries and certain operating costs until the end of the year. 

According to Hermann, the suffering of ordinary employees is the true face of state capture. “We want that face to be the face of those in orange overalls behind bars,” Hermann said.

Solidarity will now continue at full pace to pursue its campaign to prosecute the looters. Discussions with advocate Gerrie Nel of AfriForum’s private prosecutions unit about the possibility of private prosecution have already taken place.  

Issued by Helgard Cronjé, Deputy General Secretary: Public Sector, 31 July 2022