Trade union Solidarity reported on Thursday that pension funds for Denel workers had not been paid to the company’s pension fund, Denret. This information had been provided by Denret. The union also reported that it had demanded that Denel provide proof of payment.

Solidarity further stated that Denel management had met with unions on Thursday and had given verbal assurances that the funds had been transferred to Denret. While it welcomed these verbal assurances, Solidarity remained sceptical.

“Denel has not responded by offering proof of payment yet, and so the uncertainty remains,” pointed out Solidarity defence and aerospace sector coordinator Helgard Cronjé. “The way in which Denel, and by extension government, have treated employees is an absolute disgrace.”

Should the payment not be confirmed, the union will act. “Solidarity has a mandate from our members to lay criminal charges to force Denel to pay all outstanding money,” he said.

Although Denel management had apologised and recognised the inconvenience this situation had caused its employees, the fact was, the union observed, that tax deductions, skills levy deductions and Unemployment Insurance Fund deductions had not been paid to the respective funds. Solidarity was taking legal action to ensure these monies were paid.

“Denel has failed to provide its employees with information they are entitled to and which adversely affects their lives,” he affirmed. “Solidarity believes that Denel’s management does not grasp the seriousness of the situation and the impact it has on individuals.”

“The late payment of salaries has a massive impact on real people,” he highlighted. “These are homeowners at risk of losing their homes, parents who are unable to pay for their children’s education, and families cracking under the financial pressure.”

“We will scrutinise any solution Denel is currently seeking to address its liquidity challenges,” assured Cronjé. “The current situation is totally unacceptable, and Solidarity will hold Denel to account on behalf of our members, but also on behalf of all workers at Denel.”