Denel doesn’t have operating capital to pay workers - Report

Eyewitness News reporter Bonga Dlulane says unions' attempt to get money from Denel is like extracting water from a rock.

Unions Solidarity and the United Association of South Africa are preparing to file contempt of court papers after the state arms manufacturer Denel failed to comply with a judgment, ordering them to pay workers outstanding salaries.

Eyewitness News Reporter Bonga Dlulane says Denel has been struggling to pay over 3,700 employees their full salaries since May this year, stating they do not have the money.

They have 3,700 workers that have not been paid, meaning they have millions and millions of money owed to workers and they do not have the capacity. They don’t have operating capital to pay these people.

Bonga Dlulane- EWN Reporter

RELATED: Solidarity's urgent court documents to force Denel to pay employees taxes, UIF

The Labour Court on 4 August 2020 ordered Denel to pay workers outstanding salaries for May, June and July as well as statutory obligations such as employee pension fund on the 7 of August.

Dlulane says Denel told trade unions that it could not honour the court ruling due to liquidity crisis which led them to miss the deadline. He added that the government is not able to assist further as money is now focused on funding COVID-19 related issues.

Government has made it clear that with the money going to COVID-19, we don’t have money to be bailing SOEs.

Bonga Dlulane- EWN Reporter

Listen below for the full interview ...

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