Trade union Solidarity says although they are happy that Denel can now pay the outstanding portion of its June 2019 salary bill, it is not a sustainable solution. Solidarity remains extremely concerned about Denel’s short-term financial position.
Solidarity says there are talks of a bailout by the end of September or October 2019, but there is no certainty about the cashflow challenges facing Denel and possible solutions for that in the meantime.
Great uncertainty among employees
“Denel did not communicate clearly on this matter at all. This led to great uncertainty among employees, which, of course, could have long-term consequences for staff retention for Denel,” said Solidarity Deputy General Secretary Johan Botha.
Denel CEO Mr Danie du Toit confirmed that communication was a problem, but he gave assurances that this would improve in future. He invited the trade unions to meet with him on a monthly basis to receive the latest information on the progress being made.
“It is gratifying to see that the overwhelming media reaction has resulted in the necessary pressure on the Denel management and the government to obtain finances for the outstanding salaries so quickly,” Botha added.