Johannesburg – The National Union of Metalworkers of South Africa (NUMSA) has lambasted Denel’s management for failing to pay workers’ salaries.
Management addressed workers at Denel Dynamics and PMP on 19 and 20 January 2026, informing them that the company lacks the financial resources to pay January salaries, which are due on 23 January 2026.
“This announcement has left workers distressed, anxious, and uncertain about how they will provide for their families,” stated Irvin Jim, NUMSA General Secretary.
“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.”
Jim said that 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,” Jim said.
“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.
“NUMSA is further 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.”
Jim stated that Denel has already received R1.8 billion in bailout funding from the National Treasury, intended to re-ignite production, pay salaries, and settle outstanding debts.
“This amount forms part of a broader R3.4 billion allocation, subject to certain conditions being met,” said the NUMSA general secretary.
“Prior to this, Denel received R992 million in working capital support.”
Jiim said NUMSA has consistently maintained that 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,” Jim said.
“Workers cannot and will not be treated as an afterthought while governance failures persist.”
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