Denel: Solidarity members say no to salary cuts while large-scale mismanagement is raging on
5 November 2018
Solidarity members expressed their dissatisfaction with Denel management’s proposal to cut salaries with 20% as from the end of November. This salary cut is allegedly needed to restore cash flow, thereby stimulating much needed production activity and to generate income. During a recent mandating process Solidarity members rejected those proposals.
“While it is common knowledge that Denel is currently experiencing severe cash constraints, including outstanding payments of R1,2 billion to suppliers, Solidarity members are not responsible for the mismanagement and poor management decisions which landed Denel in its current financial conundrum,” Solidarity Deputy General Secretary Johan Botha said.
According to Botha, the 2017/18 financial report of Denel SOC Ltd shows that in the midst of poor management decisions, Denel’s Group Financial Director still received a hefty performance bonus of R3,28 million, and his total remuneration package for this period was R7,032 million. “In 2016/17 the salary bill for group executives increased from R22 million in 2016/17 to R41,8 million in 2017/18,” Botha said.
“Not one of the executives who has been responsible for the poor decisions and mismanagement has been criminally prosecuted, but our members have to resign themselves to the fact that “One Denel” means you have to carry the can for the mismanagement perpetrated by others.