The Congress of South African Trade Unions (COSATU) welcomes the payment of salaries due to Denel workers at two of its divisions, Denel Dynamics and Denel PMP (Pretoria Metal Pressings).  This provides welcome relief to these hard-working employees and their families. 

We remain concerned about the state of these divisions and the broader Denel group.  Workers at these two divisions were informed earlier in the week that they may not be paid.  Management needs to take workers into their confidence about the implementation of Denel’s turnaround plan, how the substantial financial support from government has been utilised, and what is being done to fulfill its backlog of orders to clients.

Workers need assurance that this will not happen again next month and that management will ensure that Denel is truly on the path to recovery from the dark chapter of state capture and will return to its rightful place as the leading defence industry company in the continent and a global leader.

It is critical that the Ministry and Department of Defence actively fulfill their oversight role for Denel and not simply rely upon good wishes and glossy presentations from management.  This needs to include a close partnership with Armscor and the Department of Trade, Industry and Competition, as well as major domestic customers such as the South African National Defence Force, Police Service, Correctional Services and other law enforcement arms of the state and the private security and arms industry.  This partnership is critical to reviving the defence and aviation masterplan.

COSATU will continue to offer its support to workers at Denel and the unions organising there.  Denel can and must be turned around as the state capture chapter is dismantled by the African National Congress led government.  Its turnaround will be an important catalyst to the revival of South Africa’s lucrative defence industry and the sustaining and creation of thousands of badly needed jobs.

Issued by COSATU