Trade unions Uasa (which no longer uses its original full name) and the Federation of Unions of South Africa (Fedusa), to which Uasa is affiliated, have urged the Department of Public Enterprises (DPE) to seek help from other government departments to find funds to save financially-embattled State-owned defence industrial group Denel.
The two labour bodies are calling on the DPE to hold talks with agencies such as the National Treasury, and the departments of Trade, Industry and Competition and Defence, to find the funding needed to execute a turnaround plan for the parastatal.
Senior members of these and other unions met with senior Denel and DPE officials on Monday to discuss potential turnaround strategies for the State-owned entity (SOE).
For a year now, Denel employees have not been receiving their full salaries, because of the group’s financial crisis.
“Denel cannot be allowed to fail as it is core to the Defence and Aerospace Masterplan adopted by the government,” highlighted the unions in their statement.
“Uasa is hopeful that engaging the relevant State departments combined with the Defence and Aerospace Masterplan will culminate in a solution for the SOE‘s woes.”