Trade union Uasa has brought an urgent Labour Court application against State-owned defence group Denel to order it to honour all outstanding contractual obligations and effect payment of Uasa members’ full remuneration from August 1, 2020, to date within 14 days of the order.

It also seeks an order that Denel deduct and pay overall statutory and other contributions deductible in terms of the employment contracts and relevant legislation from August 2020 to date.

The union is seeking the court’s intervention in light of the expected R1-billion payout Denel will receive from the Denel Medical Trust Fund.

The High Court, on February 24, ruled that a variation of the fund deed allows for the excess trust funds to be allocated to Denel.

“As the State-owned enterprise owes workers almost R830-million in unpaid salaries, it is only logical that the money be used to pay all outstanding salaries owed to employees,” Uasa says.

Uasa members cannot obtain IRP5 employee tax certificates or tax compliance certificates from the South African Revenue Service owing to their unpaid taxes. Some of them had to pay medical expenses from their own pockets owing to the nonpayment of contributions to their medical funds by Denel, the union points out.

“Uasa urges Denel to pay its employees what is due. Uasa members have survived hand-to-mouth. Some have lost their properties and cars owing to financial strains, while other workers have been unable to pay their children’s school fees. Denel is acting unlawfully and thousands of its employees and their dependants are suffering on a daily basis.

“The breach of the contractual and statutory obligations by Denel causes Uasa members harm and hardship on an ongoing basis. It has been almost two years since they last received their full remuneration. Despite these excessive hardships, Uasa members still continue to work.

“Under the circumstances, Uasa has no alternative but to approach the Labour Court for relief on behalf of its members,” the union says.