Denel's wage dispute: Workers demand 7% increase after years without raises
Image: Oupa Mokoena / Independent Newspapers
Denel, the state-owned arms manufacturer, told the National Union of Metalworkers of South Africa (Numsa) that a 7% wage increase is unaffordable and unsustainable in the long term, but offered a 4% increase instead.
This was made known on Wednesday during a closed-door meeting between the union leaders and Denel's board members in Centurion, where Numsa-affiliated workers picketed outside the company's headquarters.
Regional Secretary Jerry Morulane said the meeting aimed to find a resolution on implementing a 7% wage increase.
He said: 'Workers at Denel spent the duration of the meeting picketing outside in order to highlight their demands. The meeting was attended by the executive management, the board and recognised unions.'
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
He said Denel executives had initially approved and communicated a 7% wage increase to employees earlier this year, but the board later intervened, reversed the decision, and unilaterally implemented a 4% increase for the 2025/26 financial year.
Numsa members have rejected the proposal of 4% saying the last time workers received an increase was in 2019.
Morulane noted that during the Covid-19 lockdown, several state-owned enterprises were restructured under the leadership of then Public Enterprises Minister Pravin Gordhan.
He said: 'During that time, as part of the plan to 'save Denel', workers endured many months without any kind of salary. Many of them lost assets, and even homes. Others were forced to take their children out of school. The financial distress caused so much misery, that unfortunately, it is alleged that two employees passed away due to suicide.'
He said Denel workers feel they made sacrifices to save the entity and now deserve a wage increase, given their struggles with the cost of living.
Acting board chairperson Gloria Serobe explained that Denel cannot afford a 7% wage increase as it would be unsustainable in the long term.
She said Denel can afford to implement a 4% wage increase.
Morulane said: 'After extensive negotiations, it was agreed by all parties that a task team or 'war room' would be established to find a sustainable way to fund the increase. The task team has been established to look at the practicality of the successful implementation of the corporate plan, which shall in turn, assist in funding the increase demanded by workers.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
12 hours ago
- IOL News
Zoleka Lisa on steering SAB through booze bans while driving impact and growth
Zoleka Lisa, Vice President, Corporate Affairs, South African Breweries (SAB). Image: Supplied Zoleka Lisa is VP of Corporate Affairs at South African Breweries (SAB), where she oversees public policy, communications, stakeholder relations, entrepreneurship, and social impact. She moved from a senior role at Accenture into the alcohol industry to influence economic development and social initiatives on a national scale. Lisa has led SAB through major challenges, including complex COVID-19 alcohol bans, and is committed to mentoring emerging leaders, promoting responsible business, and driving inclusive growth across South Africa. What first inspired you to do what you do – and what was the moment that changed everything for you? My journey has always been fueled by curiosity, a relentless desire to understand the forces shaping our world and society. Growing up in a home that prioritised education, resilience, empathy, and purpose, I learned early on the value of discipline and kindness from my parents and grandmother. While I didn't have a specific dream career in mind, these values laid the foundation for my leadership journey. The pivotal moment came when I transitioned from a senior role at Accenture to the South African Breweries. That leap from management consulting to an industry that touches everyday lives enabled me to directly influence economic development, entrepreneurship, and social impact on a large scale, giving my work deeper meaning. What's the biggest challenge you've faced on your journey, and how did you push through it? One of the most critical challenges was navigating the COVID-19 pandemic shortly after being promoted to Vice President of Corporate Affairs. We faced complex alcohol bans that threatened the sustainability of our entire value chain, impacting livelihoods across the industry. Balancing government policy objectives with protecting workers and entrepreneurs required immense resilience, strategic dialogue, and collaboration. I could have stepped back, but instead I leaned into tenacity, surrounding myself with strong leaders and mentors to guide us through. That experience reinforced the importance of perseverance, agility, and compassionate leadership in crisis. What achievement are you most proud of, the one that still makes you smile when you think about it? I am deeply proud of leading a passionate team of change agents who are transforming how the industry engages with society. Together, we have driven impactful initiatives that uplift communities, promote responsible consumption, and foster entrepreneurship. Equally rewarding is mentoring emerging leaders—especially women—who have found their voices, seized opportunities, and gone on to lead with confidence. Seeing those individuals thrive and make their mark is a source of great joy and pride for me. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading What makes your role or career path different or special in South Africa? My role sits at the intersection of business growth, social impact, and national development, a unique vantage point in South Africa's complex landscape. As Vice President at SAB, I oversee public policy, communications, stakeholder relations, entrepreneurship, and social impact portfolios, which are central to how we build meaningful, responsible relationships with society. This position enables me to influence policies that support local industries, embed shared values into our growth, and contribute to transformative initiatives that resonate beyond business metrics. Serving on industry and community boards allows me to champion change that benefits the broader South African economy and society. How do you think the work you do is making a difference – whether in your industry, your community, or for other women? I believe in creating opportunities where people, especially women and youth, can flourish and thrive. Through SAB and the SAB Foundation, we invest in agriculture, entrepreneurship, and social upliftment to ensure inclusive growth. This work is about more than business; it's about empowering communities and nurturing leaders who will shape South Africa's future. I am deeply inspired by the resilience and tenacity of women who overcome adversity daily, and mentoring them to find their leadership voices is one of the most fulfilling parts of my role. What's the one piece of advice you'd give to a young woman who dreams of following a similar path? Make yourself proud. In large organisations, it's easy to get lost trying to please everyone or meet endless expectations. Instead, focus on your own goals, build a clear career plan, and identify supporters and sponsors who believe in your potential. Lean into that network and, most importantly, show up for yourself every day, through your work, your learning, and your leadership. Your journey is yours to own, and success is measured by how true you stay to your values and ambitions. Who's been the biggest influence or mentor in your career? My greatest influences have been my family, especially my parents and grandmother, who taught me discipline, resilience, and the power of education. They provided the emotional and moral compass that guides me today. Beyond family, I find inspiration in African changemakers, many of whom are not public figures but community leaders demonstrating unwavering commitment to development, women's empowerment, and social justice. Their courage and values constantly motivate me to lead with purpose. What's one myth about your job or industry you'd love to clear up? Many assume the alcohol industry only fuels irresponsible drinking or that our work is all about parties. In reality, we invest heavily in educating consumers about moderation and responsibility because lives and livelihoods depend on it. Like any business, our days are filled with deadlines, strategic planning, public policy engagement, and financial analysis to ensure our impact is meaningful and lasting. If you could give yourself one piece of advice, what would it be? Trust your own voice and show up for yourself and your team unapologetically. Finding my authentic voice and leadership style has been a journey of embracing all parts of myself, whether it's being a supermom at home, a dedicated leader at work, or showing up with my all-stars, my blue (and sometimes blonde) hair in boardrooms. Through this authenticity, I've created a space where diverse voices are genuinely heard and valued. Leadership isn't about fitting into a mould; it's about leaning into your strengths, committing to continuous learning, and fostering environments that empower others to do the same. When leaders show up unapologetically, being self-aware and embracing their unique journeys, they inspire confidence and courage, not only in themselves but in everyone around them, building stronger, more inclusive teams and communities. When you think back to the subjects you chose in high school or what you studied afterwards, did you ever imagine you'd end up where you are today – and how did that journey unfold? I often laugh and say I was definitely more of a nerdy 'thank you, professor' type than someone who was cool, but deeply curious about how the world worked and why. When I went to university, I studied Environmental Science and Economics, fields that gave me a broad perspective on how complex systems operate. Early in my career, I focused heavily on strategy and consulting, working with top global companies like Accenture. That foundation in problem-solving and business acumen has been invaluable. Now, as Head of Corporate Affairs for South African Breweries, I truly feel I've come full circle in my journey. Along the way, I pursued executive development programs at the London School of Economics and Stanford, which sharpened my strategic thinking and leadership skills. Today, I'm able to apply everything I'm passionate about, strategy, socio-economic insight, and geopolitical understanding, to work that is both meaningful and impactful. This blend of experiences, combined with deeply held values, has shaped me not just as a leader but also as a mother and a person. It's a journey I hope to continue paying forward by mentoring others and contributing to the growth of the next generation of leaders. IOL
The Citizen
18 hours ago
- The Citizen
Responses to US tariff increases may trigger closer tax scrutiny
Graphene Economics says even Mauritius is looking into intra-group transactions more closely. Global crises – such as the 2008 financial crisis, the Covid-19 pandemic, and the recent international trade tensions created by US President Donald Trump – generally result in renewed focus on tax collection, particularly from multinational companies. Tax authorities will take a closer look at companies' transfer pricing policies and whether prices are being adjusted because of outside shocks, or whether the tariff increases are a convenient opportunity to shift profits to head office countries, warns Michael Hewson, director at Graphene Economics. Transfer pricing is the price set when different parts of the same company, like its branches or subsidiaries, buy and sell things from each other – whether it is products, services, or ideas. Transfer pricing policies influence how much tax a company pays in the countries where it operate. ALSO READ: US tariffs: SA sends new proposal but no changes to laws Reduced prices Hewson says companies may react to the punitive tariffs introduced by the US by reducing the price of goods they export to the US in order to remain competitive. The risk is that they will lose market share if they do not make price adjustments to respond to the increased tariffs. This, says Hewson, may attract the attention of revenue authorities. 'The South African Revenue Service [Sars] may challenge why prices to a related party in the US are now lower than prices to third parties in other countries,' he explains. Hewson gives the example of a local manufacturer. If a global retailer, which manufacturers in China and other markets affected by high tariffs, sells more into SA, the demand for the local manufacturer's products may reduce. Especially if the prices charged by the global retailer reduce. This would impact the profitability of the local manufacturer. 'These reduced profits may cause Sars to ask whether the lower profits are due to its transfer pricing policy, even though it's actually impacted by external commercial factors.' ALSO READ: US tariff an existential threat for a third of metals and engineering sector Commercial rational Companies need to carefully record their decisions for making pricing adjustments, along with the commercial rationale behind them. When a dispute arises, it may be years after the actual event, and it can be quite a challenge to find the right documentation – or even people who were involved in the decision-making at the time. Hewson says Graphene Economics is increasingly receiving transfer pricing queries from countries it had not previously heard from. It has seen a notable increased focus on transfer pricing policies from East and West Africa. 'Governments are seeing transfer pricing as a big opportunity for revenue collections and the global shocks are proliferating the attention.' The work done by institutions such as the African Tax Administration Forum (Ataf), the Organisation for Economic Cooperation and Development (OECD), the United Nations, and the World Bank have assisted with capacity building, training, and the introduction of transfer pricing legislation into Africa. There has also been increased information sharing between Sars and revenue authorities in East Africa and West Africa. Mauritius, too, has recently been scrutinising intra-group transactions more closely and the number of audits has increased – something that has been unheard of in the recent past, notes Hewson. ALSO READ: Transfer pricing: 'Days of pleading ignorance are over' Reducing risk and costs Important tools to mitigate disputes with tax authorities include advanced pricing agreements (APAs) and mutual agreement procedures (MAPs). Hewson says there are several companies in SA that are keen to enter into APAs with the tax authorities. The main aim of an APA is to establish how prices will be set for future transactions, thereby reducing the risk of disputes following an audit, and the possibility of double taxation. Draft legislation for a proposed APA Programme was introduced in 2023 and according to ENSafrica, the draft bill included a clause indicating that a chapter on the APA programme will be inserted into the Income Tax Act. 'The introduction of the APA programme is a positive and significant development in South Africa's efforts to enhance its tax administration system. It provides taxpayers with an alternative, binding arrangement with Sars, and it will also offer upfront certainty on transfer pricing positions for a defined period,' the firm said at the time. Hewson notes that companies generally do not care where their profits are taxed, but they want to avoid double taxation. Several countries in Africa are using APAs. MAPs, on the other hand, offer a safety net when double taxation has already occurred due to tax authorities taking different positions. The key differences between APAs and MAPs Source: Microsoft Co-Pilot This article was republished from Moneyweb. Read the original here.
The Citizen
2 days ago
- The Citizen
New smoking laws will drive illicit tobacco market, warns industry leader
The proposed tobacco bill could change the way smokers access and enjoy cigarettes British American Tobacco South Africa (Batsa) has warned that the pending tobacco bill could make life easier for illicit traders. The tobacco giant gave a presentation to parliament's portfolio committee on health on Tuesday, where it outlined its opposition to the bill. The Tobacco Products and Electronic Delivery Systems Conrtol Bill could introduce a host of changes to the way smokers access and enjoy their vice of choice. Illicit trade doubles in 10 years Batsa's presentation explained how South Africa saw a excise tax loss of over R4 billion while smoking was banned during the 2020 government-mandated Covid lockdowns. Head of Corporate and Regulatory Affairs at the company's sub-Saharan Africa office, Johnny Moloto, said the industry was now dominated by illicit trade. Moloto highlighted how, in the space of 10 years, the illicit trade has gone from 35% of the market to roughly 75% currently. ALSO READ: Sars fights on, as illicit trade 'devastates' SA's fiscus He stated that the trend was cemented during the 2020 cigarette sales ban that saw smokers hunting for alternatives. Batsa's footprint in South Africa includes a factory exporting to eight markets, 35 000 industry-related jobs and 1 600 employees and a GDP contribution of R14.8 billion. 'We as Batsa contribute R8 billion annually in taxes to the fiscus, yet we are expected to compete against criminal syndicates,' Moloto said. Plain packaging an own-goal He explained that Batsa believes the bill is 'fundamentally flawed' due to a lack of both compliance and enforcement. 'This impact will only be felt by a small, compliant minority while the illicit majority thrive,' said Moloto. 'Every measure that we believe makes legal products less accessible or more expensive, we believe will drive more consumers towards the illicit market, where government has zero control over the contents, quality and age restrictions.' Some of the key outcomes of the bill aim to convert all indoor public spaces into smoke-free zones, mandatory plain packaging and a ban on cigarette vending machines and product displays. Moloto stressed that forcing manufacturers to release products in plain packaging would aid illicit sales as it would make it harder to detect counterfeit goods. Additionally, removing product displays at points of sale would deny consumers the ability to make informed decisions. The bill would also regulate vaping, with Moloto urging the committee to consider changes that would differentiate between combustibles and smokeless products based on risk levels. NOW READ: Tobacco Bill bans sale of loose cigarettes – informal traders fear bankruptcy
