The Congress of South African Trade Unions (COSATU) is beyond furious that two of Denel’s divisions, Denel Dynamics and Denel PMP (Pretoria Metal Pressings), have informed staff that they will not be paid this month. This is completely unacceptable, a violation of our labour laws and must be condemned in the strongest possible terms. This disgraceful failure to pay workers their meagre salaries cannot be tolerated.
We expect the Minister for Defence, Ms. Angie Motshekga, to immediately intervene and ensure that management pays staff what they are owed in full by no later than the end of this week. This must include workers’ third-party deductions and taxes.
Denel was at the epicentre of the state capture project during former President Jacob Zuma’s tenure. The mass looting and theft of intellectual property reportedly done by the Gupta family amongst others is well known. Staff at Denel went through the most horrendous trauma during this period, including at one stage not being paid for up to 18 months. Many workers lost their homes, resorted to sleeping in cars and some tragically committed suicide.
We had hoped that this dark chapter had closed with substantial financial relief from government and the appointment of new management. Green shoots reported in 2025 gave workers hope that Denel was on the path of returning to its rightful place as a global leader in arms manufacturing.
Denel has the potential to be turned around. It has an impressive order book from countries around the world. But it requires competent management, including a Board. It needs to be cleansed of the remnants of corruption and wasteful expenditure. Support for it from the South African National Defence Force and Police Service as well as other state security arms and the private security industry must be ramped up as local procurement is the most important path for nurturing a domestic industry.
The Federation is beyond irritated by the lack of action and leadership from the Ministry and Department of Defence. The days of glorifying mediocrity must come to an end. If they spent less time engaging in infantile and reckless political adventurism and twerking, a turnaround plan would be in place at Denel and the defence sector.
Denel is in deep trouble and requires firm and decisive leadership from its management, board, the Department and the Ministry. If they are not able or willing to provide it, then the Presidency must act and show them the door.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za
