Bleak Christmas on the cards for Denel employees
Fears are growing that Denel employees will not receive their salaries on time or an annual 13th cheque.
This is according to the Federation of Unions of South Africa (Fedusa), which says it has seen a letter sent to staff.
According to Fedusa, the letter explains that the situation is due to cashflow problems being experienced by Denel. The financial issues have also led to Denel defaulting on supplier payments and some employees not receiving a 13th cheque.
The letter was sent by the company's Chief Executive Officer (CEO) Zwelakhe Ntshepe.
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Ntshepe says Denel will engage government to try and avert a situation where December salaries are also not paid.
Denel employees will know by Friday if salaries will be delayed or not.
Fedusa says it will not tolerate the abuse of its members by an "incompetent board and management of Denel".
The union has called on the board to find the money to pay workers.
Fedusa has also called on the board and Public Enterprises Minister Lynne Brown to resign due to what it says is a lack of corporate governance skills.
Efforts to reach Denel to comment on the letter has proved unsuccessful.