https://newsletter.en.creamermedia.com
Business|Defence|Denel|Industrial|Sustainable|Solutions
Business|Defence|Denel|Industrial|Sustainable|Solutions
business|defence|denel|industrial|sustainable|solutions

Denel confirms salary cut; union expresses shock and concern

Some of the Denel Group’s products on display – in the foreground, an Umkhonto naval surface-to-air missile, with a Badger infantry fighting vehicle behind, and just visible in the left background, a Seeker unmanned aerial vehicle

Some of the Denel Group’s products on display – in the foreground, an Umkhonto naval surface-to-air missile, with a Badger infantry fighting vehicle behind, and just visible in the left background, a Seeker unmanned aerial vehicle

Photo by Duane Daws/Creamer Media

25th June 2019

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

Font size: - +

State-owned defence industrial group Denel confirmed on Tuesday that it will pay its staff only 85% of their salaries for this month. “Due to ongoing liquidity challenges we are now faced with unfortunate reality that the company is not in a position to fulfil the 100% salary obligation,” stated Denel Group CEO Danie du Toit.

He assured that the group’s management was working hard to make sure that employees would receive the remaining 15% of their salaries as quickly as possible. He further affirmed that the management was committed to fulfilling the company’s contractual obligations to its staff.

“The Shareholder [the government], the Board and management are continuously working to find sustainable solutions to the liquidity crisis facing Denel,” stated the group in its press release. “Government is cognisant of the fact that Denel is highly leveraged and in need of additional liquidity to rebuild the business.”

Trade union Solidarity also issued a statement on Tuesday, in reaction to the news from Denel. It said that the union had learnt of the news “with shock”. It pointed out that, in December last year, Denel had committed itself to informing its employees by the 15th of each month whether or not it would be able to pay their salaries for that month.

“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,” highlighted Solidarity deputy general secretary Johan Botha. “The impact on employees and their families is a big concern and leads to unnecessary pressure and stress.”

Given the state of the economy is currently “challenging”, he asserted that the situation was “very traumatic” for Denel staff, as they did not know if they would get paid in July. “We request Denel to be more cautious with the communication of sensitive information which has a direct impact on the lives of their employees.”

Edited by Creamer Media Reporter

Comments

Showroom

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (08/11/2024)
8th November 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.078 0.2s - 193pq - 2rq
Subscribe Now