Denel in desperate need of a turnaround plan - Cosatu

Trade union federation Cosatu said the state arms manufacturer is in desperate need of a turnaround if its financial issues are to be resolved.

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CAPE TOWN - It's another bleak Christmas for Denel employees who will now enter a second year without being fully paid.

Trade union federation Cosatu said the state arms manufacturer is in desperate need of a turnaround if its financial issues are to be resolved.

In September Denel employees approached the courts to have it placed under business rescue to help solve its financial crisis.

Denel management told Parliament in August that it currently owes employees over R600 million and its suppliers R900 million.

Cosatu now warns of a "horror" Christmas for employees of the state arms manufacturer - who haven’t been fully paid since last year with many facing financial ruin.

Cosatu’s Parliament co-ordinator Mathew Park said: "It’s going to be quite a bleak Christmas for those workers. Many of them have resigned, many have lost their cars, houses and furniture. There have even been reports of a suicide among some of those workers at Denel in the past two years."

Parks said what Denel requires is a turnaround strategy to be able to build and deliver arms to clients and less political interference.

"Anybody who does contracts with Denel would feel surety that they would get their goods so really it requires a huge turnaround plan."