Trade union UASA announced that it has started legal action against State-owned defence industrial group Denel. This is because the company has failed to pay its employees their salaries on the agreed date of May 25.
Denel informed the union that it would also not be able to pay its staff in June and July. The group, charged the union, is violating its employment contracts.
“UASA will not allow its members employed at Denel to be victims of this financial mismanagement any longer,” asserted the union. “Our members cannot afford to be without income for a single month, not to mention for three or more. They have a right to be remunerated for their labour as per their employment contract.”
The union observed that Denel had been in a parlous financial situation since late 2017 at the latest. At that time, it could not pay staff their full salaries.
In April 2019 the Department of Public Enterprises gave Denel a R1.8-billion bailout. “Now, barely a year later, it is in the same position, asking for a further R576-million bailout, while being unable to fulfil its responsibilities towards its employees,” pointed out UASA.
The union was originally founded in 1894 and was previously known as the United Association of South Africa. It represents nearly 73 000 workers across a range of sectors and is currently a member of the Federation of Trade Unions of South Africa.