Financially-embattled State-owned defence industrial group Denel has been ordered to pay its workers their salaries, the Uasa trade union reported on Tuesday. This was the outcome of a virtual hearing by the Labour Court.
“Presiding Judge Andre van Niekerk in his findings noted that Denel had breached the most fundamental obligation of an employer in an employment relationship, that is to pay renumeration for work done,” highlighted the union. The judge ordered the company to fulfil all its outstanding statutory and contractual obligations towards the Uasa members in its employment for May, June and July.
Denel has until August 7 to implement this ruling. The group was also ordered to pay all the legal costs regarding the court application.
Uasa expressed its pleasure at the result and called on the group to implement the judgment or risk becoming in contempt of court. “Uasa again calls on the government as the only shareholder in the [State-owned entity] to intervene and find an urgent solution to the liquidity crisis to ensure our members get their outstanding salaries as well as full future salaries,” urged the union.
Uasa had late last month announced its intention to take Denel to the Labour Court, because of the group’s failure to pay its employees their salaries. At that time, the union had stated that it had engaged in “months” of talks with Denel “failing to find a solution to the issue”.