Numsa says Denel workers are distressed after being informed they will not receive their salaries at the end of the month.
While President Cyril Ramaphosa recently approved salary increases for public office bearers, state-owned company Denel has informed employees that they will not receive their January salaries on Friday.
According to the National Union of Metalworkers of South Africa (Numsa), the general secretary of workers at Denel Dynamic was called to a meeting this week and was informed that the company is struggling and will not be able to pay them.
“This announcement has left workers distressed, anxious and uncertain about how they will provide for their families. Once again, workers are being forced to carry the burden of Denel’s leadership failures.
“Numsa strongly condemns Denel’s executives for allowing the company to reach this point, while workers remain the first to suffer the consequences of mismanagement and instability,” said Numsa general secretary Irvin Jim.
How to fix Denel?
The non-payment of workers at the state arms company is nothing new. Since 2024, Numsa and other unions have actively participated in efforts to stabilise Denel, including serving on a task team mandated to develop a turnaround strategy to resolve the entity’s persistent financial crisis.
The task team produced a turnaround plan estimated to cost R120 million, which was subsequently approved by the Denel board.
“As part of the task team, Numsa made concrete proposals, including suggestions for how Denel can re-capitalise itself. However, the executives ignored our suggestions, and this is why we reject any excuses from the management because they have solutions, but they are not implementing them.”
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Bailouts and leadership challenges
Jim said Numsa is also alarmed by the continued absence of a permanent board at Denel, which has deepened governance instability and undermined accountability.
“This vacuum in leadership has only worsened Denel’s operational and financial challenges. Denel has already received R1.8 billion in bailout funding from the National Treasury, intended to reignite production, pay salaries, and settle outstanding debts.
“This amount forms part of a broader R3.4 billion allocation, subject to certain conditions being met. Prior to this, Denel received R992 million in working capital support,” said Jim.
Jim said Denel requires adequate and timely funding, coupled with disciplined implementation of its turnaround strategy.
“If it is to operate efficiently and fulfil its strategic mandate. Numsa therefore demands that the Denel board urgently engage the National Treasury to secure the necessary funding to ensure that workers are paid their salaries in full and on time.
“Workers cannot and will not be treated as an afterthought while governance failures persist,” said Jim.
Ramaphosa’s increases
Earlier this week, President Cyril Ramaphosa approved salary increases for public office‑bearers of 4.1% and 3.8% in different categories, with the adjustments set to take effect from 1 April 2026.
The 4.1% increase applies to judges, magistrates, traditional leaders, and members of independent constitutional institutions.
The increase of 3.8% applies to members of the national executive, members of parliament, members of provincial executive councils and members of provincial legislatures.
President Ramaphosa’s determination follows his consideration of recommendations by the Independent Commission on the Remuneration of Public Office-Bearers.
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