Aerospace and military technology conglomerate Denel is working “tirelessly” to pay the shortfall on staff salaries, the CEO has said.
Danie du Toit said the “company had no alternative but to go this route” after some of its staff paid only 85% of their salaries this month.
He said the decision to only pay a portion of the salaries was due to “ongoing liquidity” problems.
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“Denel acknowledges the inconvenience caused by particularly the late communication,” he said.
“We are now faced with the unfortunate reality that the company is not in a position to fulfil the 100% salary obligation for June.”
Du Toit said the management was working on finding a solution to Denel’s money crisis.
“Government knows that Denel is highly leveraged and in need of additional liquidity to rebuild the business.”
He said the staff who banked with FNB had already been paid up while others would be on Wednesday but trade union Solidarity remained unimpressed.
It said the cuts came without warning despite promises by Denel in December that it would indicate by the 15th of the month whether or not salaries could be paid.
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“The impact on employees and their families is a big concern and leads to unnecessary pressure and stress,” Solidarity deputy general secretary Johan Botha said in a statement.
“We are concerned that this tendency has now started, following an expectation that the non-payment of salaries was something of the past.”
Botha said in view of the current economic climate it was traumatic for employees who were uncertain whether they would actually receive their salaries each month.
“We request Denel to be more cautious with the communication of sensitive information which has a direct impact on the lives of their employees.”
https://twitter.com/NatAlleyCat/status/1143439608316928001
I thought Denel was the best run SOE , what went wrong?
— مواطن يحترم القانون 🌘 (@Mthiimkhulu) June 25, 2019
https://twitter.com/seretloe/status/1143432438187778048
Not a good morning for South Africans. Besides Bafana dissapointing the nation. What's going on with the SOE's. My Lil bro works at Prasa and he also didn't get his full salary. Now it's Denel. Let's not call it money, miss management, it simply got stolen!
— Shentheleader (@tkshen1st) June 25, 2019
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