UPDATE: Solidarity still concerned about Denel’s survival
A high court ruling this week compelled Denel to pay over unemployment insurance and taxes deducted from employees’ salaries over the past several months.
Concern has been raised over arms manufacturer Denel’s survival and future.
Worker union Solidarity said this week, it remained concerned about the continued survival of the manufacturer despite the high court ruling that compelled it to pay over unemployment insurance and taxes deducted from employees’ salaries over the past several months.
The union labelled the court decision a major victory for itself and the employees of Denel.
“However, it is regrettable that we had to go to court just to draw Denel’s attention to payments that it should have made a while ago,” said Anton van der Bijl, head of Solidarity legal services.
The union’s urgent application came after the struggling arms manufacturer announced earlier, that it was only able to pay a portion of its employees’ salaries for June and July.
ALSO READ: Progress made in Denel “irregular spending, fraud” investigations
“Certain statutory compulsory payments such as Paye, UIF and the skills development levy were indicated on salary slips, but have not been paid over.”
Professional industry deputy general secretary Johan Botha said although it was a major step in the right direction for the greater fight against the misuse of the taxpayers’ money, Solidarity was still concerned about Denel’s future and survival.
“The steps against Denel form part of a much greater campaign – namely Solidarity’s lawful tax protest,” Botha said. “This protest includes at least six legal actions against state-owned enterprises and tax plunderers.”
Last month, Botha said those responsible for Denel’s financial crisis were not being held accountable.
ALSO READ: UPDATE: Denel promises to pay salaries in full
“They are getting off scot-free, while our members, innocent employees, have to bear the consequences.”
He said the recent non-payment of salaries could be traced directly to state capture.
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