The Federation of Unions of South Africa (FEDUSA) has strongly condemned the Board and management of DENEL, for its failure to pay the 13th cheque and salaries of 4000 personnel, of which, many belong to UASA, an affiliate of FEDUSA. In a letter to staff after meeting union leadership, management confirmed the company’s cash crisis.
“Today management met with organized labour. A very brief feedback from this meeting is as follows: while our long term business prospects look positive, however, we are currently faced with a severe cash situation that has resulted in among other impacts: Defaulting on Supplier payments and defaulting on paying the 13th cheque to some employees;” Denel CEO Zwelakhe Ntshepe said.
“’We are currently engaging various critical stakeholders, the most important being Government, to avert a situation where we may be forced to delay salary payments on the expected date for December 2017. Further details on this matter will be shared with you by no later than Friday the 15th December. We thank you for your understanding during these challenging times”.
However FEDUSA said it will not tolerate the abuse of its members by an incompetent Board and management of Denel and demanded that that they find the money to pay the workers.
Management is saying there is no money to pay our members their salaries and bonuses. This is criminal. We will defend our members’ rights and will not stop until there is a suitable and acceptable solution to this whole debacle before the Christmas break.
We call upon the Board and Minister Lynne Brown to resign with immediate effect based on the fact that both of them lack corporate governance skills,” said FEDUSA General Secretary Dennis George.