Denel Pension Fund: uncertainty reigns – Solidarity marches on

18 July 2019

Solidarity has been informed by Denret that it had not yet received payment of pension monies and, consequently, Solidarity demanded proof of payment from Denel. Denel management yesterday said at a meeting with unions that outstanding pension contributions had been paid in full, and that they were now in the process of implementing the actions proposed to Denret. 

Although Solidarity was pleased by Denel’s verbal confirmation that the outstanding pension fund monies had been paid, we remained sceptical and have therefore made every effort to verify the information.

“Denel has not responded by offering proof of payment yet, and so the uncertainty remains. The way in which Denel, and by extension government, have treated employees is an absolute disgrace,” said Helgard Cronjé, Solidarity’s Sector Coordinator for Defence and Aerospace

Solidarity will not stand by and let the grave implications of Denel’s misconduct go unnoticed. If payment is not confirmed, Solidarity will take the necessary action. “Solidarity has a mandate from our members to lay criminal charges to force Denel to pay all outstanding money,” Cronjé said.

During discussions, Denel once again apologised and acknowledged the inconvenience caused by this situation and said they would recommit to sharing information timeously. However tax deductions, UIF deductions and Skills Levy deductions have still not been paid to the relevant funds. Solidarity is taking legal action to ensure payment of these outstanding deductions.

“Denel has failed to provide its employees with information they are entitled to and which adversely affects their lives. Solidarity believes that Denel’s management does not grasp the seriousness of the situation and the impact it has on individuals,” Cronje said.

“The late payment of salaries has a massive impact on real people. These are homeowners at risk of losing their homes, parents who are unable to pay for their children’s education, and families cracking under the financial pressure,” Cronjé warned.

Solidarity will not stop fighting for the real people being impacted by Denel’s non-payment

“We will scrutinise any solution Denel is currently seeking to address its liquidity challenges. The current situation is totally unacceptable, and Solidarity will hold Denel to account on behalf of our members, but also on behalf of all workers at Denel,” Cronjé concluded.

Issued by Johan Botha, Deputy General Secretary, Solidarity, 18 July 2019