The Solidarity trade union announced on Wednesday that it would restart its legal action against State-owned defence industrial group Denel regarding the payment of salaries to the group’s employees. The union had previously charged that some Denel workers had only received 20% of their pay in May. Not only that, but Denel had also been unable to pay employees’ income tax and other statutory deductions to third parties since April and future salaries were in danger.

The union added that the resignation of Denel Group CEO Danie du Toit, announced on Monday, would only make things worse for the financially-embattled group. Denel gave no reason for Du Toit’s resignation.

Last month, the union initiated action in the Labour Court against Denel over its non-payment of salaries and its failure to fulfil its statutory obligations. The case would have been heard on June 30, but was removed from the urgent court roll following a commitment by the group’s lawyers that it would participate in a facilitation process.

Solidarity took that as implying that Denel would pay the workers all their arrears. Further, that the group would allow the union to advise on how this should be done.

“There seems to be a total lack of commitment from the board of directors, the Department of Public Enterprises and the Treasury as far as the successful turnaround of Denel is concerned,” observed Solidarity defence and aviation sector coordinator Helgard Cronjé. “Many turnaround plans have already been submitted by the management, but the board and the Minister are not prepared to accept responsibility and provide the financial assistance that is required. Solidarity therefore has no choice but to continue with urgent legal action.”

“Our first and foremost priority is to protect the interests of our members at Denel,” affirmed Cronjé. “They are loyal employees and we cannot allow that they have to sacrifice their salaries to pay for corruption and mismanagement of the previous management.”