In a press statement released on Friday, financially-embattled State-owned defence industrial group Denel reported that it was trying to get an extension to the court-ordered deadline for it to pay its workers their full salaries. In a judgment handed down on August 4, the Labour Court had ordered Denel to pay all outstanding employee salaries and other obligations by August 7 (Friday).
Denel had failed to meet its salary and other financial obligations towards its staff during May, June and July. This resulted in trade unions taking it to the Labour Court. In its Friday statement, Denel assured that it respected and took seriously the court’s decision.
“The shareholder [government] and the Denel board are relentlessly working to resolve the short term challenges the company is facing currently,” affirmed the group. “Due to the stringent timelines for Denel to make payment as per the court order, engagements with the applicants [unions] on the payment extension are under way.
“Denel remains committed to meeting its obligations and to ensuring it is able to honour the judgement at the earliest opportunity,” it added. “Denel is grateful to employees for their continued support and commitment to the organisation and the executive team remains positive that it will soon emerge from this crisis.”