LABOUR UNIONS PLEAD WITH THE STATE TO SAVE DENEL FROM COLLAPSE

STATE arms manufacturer Denel, which last month failed to pay full staff salaries in some subsidiaries, has unlikely allies in labour unions, which are entreating government for financial assistance to save it from total collapse. The United Association of South Africa (Uasa) and its subsidiary the Federation of Unions South Africa yesterday urged the Department of Public Enterprises to engage Treasury and other state entities such as the Department of Trade, Industry and Competition and Department of Defence to find financial assistance for Denel given the lack of funding required to execute any turnaround plan. “Denel cannot be allowed to fail as it is core to the Defence and Aerospace Masterplan adopted by government,” they said. Abigail Moyo, spokesperson of the trade union Uasa said yesterday that a discussion with organised labour had been scheduled for today and hopefully the strategic plan would be tabled for its input. Uasa said it hoped that engaging the relevant state departments combined with the Defence and Aerospace Masterplan would culminate in a solution for the state-owned enterprises woes. For the past year, Denel employees have been surviving on hope as they have not been receiving full salaries. Denel also recently informed employees of intended restructuring. |