(Photo: Maroela Media)
Solidarity welcomes Denel’s decision on a new wage agreement which grants employees across the board an increase of 5.5% retroactively from 1 April.
The trade union believes it is a significant step to give much-needed recognition to employees who have had to endure great uncertainty, challenges and sacrifices at Denel over the years.
According to Derek Mans, coordinator for aviation and defense at Solidarity, the agreement sends an important message to employees who have continued to do their jobs under difficult circumstances and try to keep the arms manufacturer afloat.
He emphasizes that Denel still faces serious financial and management challenges and there is presumably still a long way to go.
“However, this agreement is an important step to restore employees’ dignity and give recognition to people who, despite years of uncertainty, remained loyal and still do their jobs,” says Mans.
Solidarity further believes that the agreement emphasizes the trade union’s willingness to work constructively with Denel as an employer and especially its determination to protect and develop its members’ interests as employees.
Solidarity welcomes Denel’s decision on a new wage agreement which grants employees across the board an increase of 5.5% retroactively from 1 April. (Photo: iStock)
“Our approach remains one of cooperation where possible, provided it protects our members’ interests. At the same time, we would like to support realistic and workable solutions for Denel’s future.
“We are cautiously optimistic, but practical and feasible decisions still need to be made about the company’s course and future,” says Mans.
Solidarity further believes there are still signs that divisions of Denel can achieve success. One division recently showed strong financial performance, with ex gratia bonuses and salary adjustments even backdated.
According to Solidarity, this shows how islands of excellence still exist in the company.
The union also welcomed the renewed interest of Omusha Firearms to invest in Denel’s PMP division.
“These developments create hope and space for constructive and future-oriented discussions about Denel. South Africa still needs its strategically essential defense sector, but this requires responsible management, credible partnerships and difficult decisions,” says Mans.
Men say Solidarity realizes that great work is undoubtedly ahead and believes that issues such as mismanagement and its serious consequences must be tackled with even greater urgency.
“However, this wage agreement is a positive step in the right direction and something that contributes to positive momentum for stability,” says Mans.