Denel workers told January pay won’t come through as frustration boils over

Another end-of-month shock for Denel staff

For workers at Denel, the end of January has brought familiar dread instead of relief. Employees at the state-owned arms manufacturer have been informed that their salaries will not be paid this Friday, plunging households into uncertainty and reigniting anger over years of instability at the embattled company.

The news, delivered during a meeting with worker representatives this week, landed hard. According to the National Union of Metalworkers of South Africa (Numsa), employees were told bluntly that the company simply does not have the money. For many workers, it is not just about missing a pay cheque, but about how to explain the situation to families who depend on them.

“Workers keep paying for leadership failures”

Numsa says the emotional toll is growing. Union general secretary Irvin Jim described workers as distressed and anxious, pointing out that Denel staff are once again absorbing the consequences of poor management and governance.

The timing has only sharpened the sense of injustice. This week, President Cyril Ramaphosa approved salary increases for public office bearers, a move that has not gone unnoticed by struggling Denel employees who now face an unpaid month. On social media, comparisons between politicians’ pay rises and workers’ empty bank accounts have sparked frustration and bitter commentary.

A crisis with a long history

This is not a new problem. Denel’s financial troubles have stretched back years, with missed salaries, halted production and ongoing uncertainty becoming part of the company’s culture. Since 2024, unions have been involved in attempts to stabilise the business, including serving on a task team tasked with crafting a turnaround plan.

That plan, costed at about R120 million and approved by the Denel board, included proposals to recapitalise the company and restore basic operations. Numsa insists workable solutions were put on the table but ignored by executives, leaving workers to bear the fallout yet again.

Bailouts, but no stability

Denel has already received significant state support. According to Numsa, the company was allocated R1.8 billion in bailout funding from National Treasury as part of a broader R3.4 billion package, with additional working capital support of nearly R1 billion provided earlier. Despite this, salaries remain unpaid and confidence continues to erode.

Jim has also raised concerns about the absence of a permanent board, warning that leadership gaps have deepened the crisis and weakened accountability. Without firm governance and decisive implementation of recovery plans, unions argue that bailouts alone will never fix Denel.

A broader question about priorities

As workers wait anxiously for answers, the Denel salary saga has become a symbol of a wider problem in South Africa’s state-owned companies: repeated rescues without meaningful reform. For employees, the demand is simple get paid, on time, for work already done.

Until that happens, Denel’s troubles will remain more than balance-sheet issues. They will continue to play out in kitchens, school fee deadlines and households stretched to breaking point, while the country debates how a strategic national asset ended up failing the very people who keep it running.

{Source: The Citizen}

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