Uasa to institute contempt of court proceedings as Denel salary battle continues
The United Association of South Africa (Uasa) says Denel employees want the state-owned arms manufacturer to take responsibility for all outstanding salaries and start paying them in full again.
Denel employees have not received their full salaries for almost eight months.
The union says the Denel board has been abdicating its responsibilities amid the Covid-19 pandemic.
“Some workers were cautious but hopeful that Denel may still pay them their full salaries, including back pay, even though their January salaries had not been paid,” says the union’s Rick Grobler.
The union has instituted contempt of court proceedings against the Denel directors after the state-owned weapons manufacturer failed to honour a court order to pay salaries.
Listen to Rick Grobler below:
Grobler says the board also failed to disclose the true financial position of the company.
“Early December the case was postponed affording the board members further opportunity to file affidavits in response, but despite being given this second chance, the board members failed to disclose the true financial position of the state-owned weapons manufacturer.
“On 28 January, UASA argued in court that the directors failed to place enough credible evidence before the court to make a finding that the company was financially unable to comply with the court order of 4 August 2020 and that the board members stood indifferent to compliance and failed to do everything necessary to comply with the order,” adds Grobler.
“UASA urges Denel management to comply with the judgment as soon as it is issued.”
ALSO READ
