Arms manufacturer Denel is the latest state-owned company to head for a clash with its employees over wages after it offered wage increases of 3% to 3.8%. The Liberated Metalworkers Union of SA, a Cosatu affiliate, said on Monday that it found it "ridiculous and provocative that the management will consider offers which are below the inflation rate". The union has asked for increases of 8% to 12%, saying it would not allow "the Thuma Mina brigade" — a reference to President Cyril Ramaphosa — to bring about changes at the expense of workers. Denel is one of several state-owned companies that is experiencing financial and immediate liquidity problems. Over the past five years the company’s financial position has deteriorated and it has been caught up in several questionable relationships with Gupta-associated businesses. Banks ceased lending to Denel in the second half of 2017 and have not yet restored funding. New board In April, Public Enterprises Minister Pravin Gordhan appointed a...
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