Embattled state-owned arms manufacturer Denel says its board and management continue to work to stabilise the company’s financial position after a march by the National Union of Metalworkers of SA (Numsa) where it demanded a 15% wage increase.
Denel is among state-owned enterprises (SOEs) hollowed out and repurposed to serve the interests of the governing elite during the state capture years. It is also among 27 SOEs that racked up R69.3bn in irregular expenditure over the past five years, and R163m in fruitless and wasteful expenditure over the period under review.
Numsa, the country’s largest union with more than 450,000 members, protested outside Denel’s offices in Centurion, Tshwane, on Thursday demanding a 15% wage increase because its members “have received only two salary increases in the last five years”.
According to data from Stats SA, annual consumer inflation cooled for a fourth consecutive month, easing to 3.8% in September from 4.4% in August. This is the lowest inflation print since March 2021, when the rate was 3.2%.
“Workers have suffered severely because of destructive cost-cutting [measures] by government and bosses,” Numsa said.
Deputy general secretary Mbuso Ngubane accused the late former public enterprises minister Pravin Gordhan of collapsing Denel.
Ngubane said SOEs were being “constantly destroyed so that at the end of the day the public shares the same sentiments to say, ‘indeed, the state is incapable of running these SOEs’”. Once public sympathy was received, the ground became fertile to “introduce private investors ... Gordhan, we are in this mess because of his legacy”.
Denel spokesperson Pam Malinda said the arms manufacturer noted Numsa’s demonstration at the Irene campus.
“Organised labour stated that they would like to express their unhappiness with the progress of the annual substantive wage negotiations process. Denel has granted permission for Numsa to demonstrate in terms of normal engagement protocols. This is a good-faith process between the parties with an expected duration of two hours, after which employees will revert to their workplaces,” Malinda said.
“Management has been having engagements with organised labour to discuss issues of concern and progress. Management reiterates its commitment to maintain good relations with labour unions that represent employees of the company.
“The board and management continue to work to stabilise the financial position and grow the company for our country. Management will continue to engage with all stakeholders.”
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