By Thapelo Molefe
Denel workers who feared going unpaid this month have finally received their salaries, but the episode has reignited concerns about the financial stability, governance and long-term survival of the state-owned defence manufacturer.
The Congress of South African Trade Unions (Cosatu) confirmed on Sunday that employees at Denel Dynamics and Denel Pretoria Metal Pressings (PMP) had been paid, days after management warned staff that the company lacked the funds to cover January salaries, due last Friday.
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The late payment followed a wave of criticism from labour unions last week, after workers were informed that Denel could not guarantee their pay.
COSATU described the situation as unacceptable and a violation of labour laws, urging Defence Minister Angie Motshekga to intervene and ensure salaries, including third-party deductions and taxes, were paid in full.
“This provides welcome relief to these hard-working employees and their families, but management must take workers into their confidence about the turnaround plan and how government funding is being used,” said Cosatu’s Parliamentary Coordinator, Matthew Parks.
The federation warned that Denel risked returning to the darkest period of state capture, when some workers reportedly went unpaid for up to 18 months, lost their homes and, in extreme cases, took their own lives.
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NUMSA also condemned Denel management, saying workers were once again being forced to shoulder the burden of leadership failures.
“Executives ignored our concrete proposals. They have solutions, but they are not implementing them. Workers cannot be treated as an afterthought while governance failures persist,” said NUMSA’s General Secretary, Irvin Jim.
Solidarity echoed these concerns, warning that the crisis had grown beyond a single division and now reflected a group-wide breakdown in leadership and oversight.
“Employees cannot continue to pay the price for governance paralysis and leadership vacuums. Denel’s strategic role, and the livelihoods of its employees, require decisive leadership, accountability and immediate intervention,” Solidarity Network coordinator Derek Mans said.
All three unions pointed to the continued absence of a permanent board at Denel, despite expectations that appointments would be finalised by December 2025. They said that interim leadership structures and fragmented accountability have deepened operational and financial instability.
The salary crisis unfolded despite significant government support to Denel. National Treasury has provided R1.8 billion in bailout funding as part of a broader R3.4 billion allocation, in addition to a previous R992 million in working capital support intended to revive production, settle debts and stabilise cash flow.
While welcoming the payment this week, Cosatu cautioned that the underlying problems remain unresolved.
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“Workers need assurance that this will not happen again next month. Oversight cannot be reduced to good wishes and glossy presentations from management,” Parks said.
Denel Dynamics, formerly known as Kentron and based in Centurion, is a strategic division responsible for advanced missile and defence systems. Together with PMP, it forms a critical part of South Africa’s defence industrial base.
Unions maintain that Denel can still be turned around, but warn that without decisive leadership, transparency and consequence management, last week’s salary scare may signal deeper trouble ahead for workers, the defence industry and thousands of jobs tied to it.
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