State-owned defence company Denel has paid overdue salaries of about R300-million to trade union Solidarity members and other employees, and has reached a settlement with Solidarity on the R90-million still owed to Solidarity members.
This settlement comes after Solidarity obtained a court order to seize Denel’s assets and bank account. Solidarity had been due to proceed with the seizure of Denel’s assets and its bank account on August 3, but the parties have reached a settlement agreement.
“Solidarity’s warrants of execution will be withdrawn, and seizure of assets will not continue. Denel employees and Solidarity members will then receive all overdue salaries,” says Solidarity deputy secretary-general Helgard Cronjé.
The payment is funded from surpluses of a post-retirement medical provision fund. Those are surpluses that will not affect benefits. There should also be sufficient funds to pay salaries and certain operating costs until the end of the year.
“This salary payment will bring huge relief to thousands of people. We are getting many messages expressing gratitude. One member wrote that he can now pay his child’s overdue school fees as a proud father.
“However, it is sad that there had to be so much suffering before members received the salaries that were due to them,” Solidarity CE Dr Dirk Hermann says.
“The suffering of ordinary employees is the true face of State capture. We want that face to be the face of those in orange overalls behind bars,” he adds.
Solidarity will now continue at full pace to pursue its campaign to prosecute those who participated in State capture. Discussions with lobby organisation AfriForum’s private prosecutions unit advocate Gerrie Nel about the possibility of private prosecution have already taken place.