UASA demands urgent intervention into the management and control of Denel

The trade union UASA is calling upon the honorable President, Mr. Ramaphosa to urgently intervene in the control and management of the Denel group. 

In view of the fact that Denel, which is a majority shareholder in LMT Products (Pty) Ltd, has already advised UASA of its intention to retrenchment 50% of its employees, UASA has been mandated by its members to table a motion to:

  • Suspend, and where applicable, remove with immediate effect, members of the board of directors, including the Chief Executive Officer and Chief Financial Officer; and
  • Suspend and where applicable remove with immediate effect, the respective executive management employees responsible for the decision-making at Denel.

Amongst others, the issues and concerns raised by employees at Denel are:

  1. The deplorable financial state of affairs of Denel and the cause and effect thereof; and
  2. The substantial reputational damage to the Denel brand, the Department of Public Enterprises, and South Africa; and
  3. The association of Denel to/with the Gupta family and their associates; and
  4. The non-transparency of Qatar as a business associate with Denel; and
  5. The lack of engagement, transparency and communication with Labour by the Denel Executives and Board;
  6. The threat of non-payment of salaries and the consequential threat of retrenchments in excess of 600 employees;

We are informed that a Denel board meeting is to take place on 22 February 2018 at Denel head office.  We understand that the purpose of this board meeting, amongst other matters is to approve the restructuring of the Denel workforce, as described above. As stated above, we note Denel, a majority shareholder in LMT Products (Pty) Ltd, has already gave notice to UASA of its intention to retrenchment 50% of its employees, despite the meeting of the board yet to take place to confirm the restructuring.

UASA vehemently oppose any form of restructuring that will negatively impact on the job security and financial freedom of employees and members of its the union.

The confidence and trust of UASA members in the Board and Executive Management is currently at 0%, due to their conduct and interaction with Denel Group employees and external stakeholders, which has caused serious reputational damage to the Denel Group. Towards this end, we already called upon the good offices of President Ramaphosa for his urgent intervention to put a stop to the plans of Denel by way of conducting a full forensic audit and an investigation on all matters above.


For further enquiries or to set up a personal interview, contact Willie van Eeden at 082 445 1945