South Africa: Union Steps in With Food Vouchers and Legal Action As Denel Fails to Pay May Salaries

analysis

Trade union UASA has set up a fund to assist its members after the embattled state-owned enterprise, Denel, abruptly announced that it would not be able to pay its employees in May. The union says they will be taking the matter to court.

State-owned defence and technology company, Denel has not paid its employees for May and says the same may apply to the months of June and July. Danie du Toit, group chief executive officer of Denel, attributes the situation to "liquidity issues" exacerbated by the Covid-19 pandemic. The company has been unable to pay its employees despite bringing back only 30% of its workforce since lockdown regulations were eased.

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