PREMIUM!

Cash-strapped Denel must dig deep to pay salaries

Business News 1 month ago

Denel’s financial woes make it unlikely that salaries will be paid by Friday, considering they need at least R370 million every month in working capital to keep operations running, but have R866 million in debts.


05 Aug 2020
PREMIUM!
Cash-strapped Denel must dig deep to pay salaries

Seeker II UAV system. Denel is worth saving - this much is clear. But how quickly this happens, and how willing those in senior positions are to admit what they don’t know, will determine whether it sinks or swims. Photo: Denel.

Denel has until Friday to pay 3 700 workers their May, June and July salaries, after the Labour Court ruled in favour of workers represented by trade unions Solidarity and Uasa on Tuesday. The workers were forced to take legal action against the global defence, security and technology giant, and African Defence Review director Darren Olivier says despite reducing the number of staff by 27% and cutting salaries, Denel still hasn’t been able to free up enough money to ensure it stays afloat.  Uasa metal and engineering industries sectoral manager Frik van Straaten said defaults on salary payments have been experienced...

BACK TO CITIZEN BACK TO PREMIUM




today in print