Solidarity today formally learnt from Denel that, as from October 2018, salary payments were in the balance due to a cash shortage. This comes after Denel, which is in a financial quandary due to a history of mismanagement, last month could not pay salaries to its senior staff when they were due.
Denel also submitted options to trade unions with regard to short time, salary cuts and the offering of voluntary severance packages (VSPs) for comment as such options could provide relief as far as short-term cash availability is concerned.
According to Solidarity Deputy General Secretary Johan Botha, Denel’s management requested trade unions to consider the proposals, comment on them, and/or to submit counterproposals. “Both the proposals and the possibility of non-payment of salaries are most worrying, especially in view of the fact that we are still awaiting feedback from the company on progress made with forensic investigations, the possible actions that should ensue from the investigations, and outstanding financial audit reports. It is regrettable that neither Denel nor its board can provide answers to trade unions’ questions about these issues,” Botha said.
Meanwhile, Solidarity announced that it had launched a petition by which Denel employees can air the concerns they have with the company and the Denel Board, and to object to the absence of remedies other than proposals that affect innocent employees. Solidarity will soon hand this petition to the board as part of a planned day of peaceful protest.
Solidarity is keen to work with Denel in finding possible solutions to make the company profitable again.