The National Union of Mineworkers (NUM) revealed that one employee at the Denel Corporate Office (DCO) allegedly received a salary increase of nearly R500,000—immediately after being suspended—while rank-and-file workers are left struggling to survive on poverty wages.
NUM’s outrage was made clear in a lengthy letter sent to CEO Tsepo Monaheng, dated August 18, where the union accused him of allowing glaring salary inequalities, governance failures, and [other] alleged irregularities to fester on his watch.
NUM’s regional organiser Mpho Hlongwane said: “Employees have not received the salary adjustments or increases previously undertaken on 28 November 2024.”
Yet, in the same breath, the union says management found the money to boost a single suspended employee’s pay by almost half a million rand.
Increases boggle the mind
NUM says it is “further informed and/or alleged that one employee’s salary at DCO was increased by nearly R500,000 immediately after suspension, despite the fact that the employee had already been receiving a full salary during the suspension.”
The union also points out that “there is also a contractor who received a salary increase, and both the aforementioned are within the Finance department at DCO.”
Meanwhile, ordinary Denel workers are barely scraping by. Some, Hlongwane says, “take home as little as R5100.00 – R5900 per month.”
For them, the idea that someone in management could receive such a massive increase, especially while off the job, is not just unfair—it’s a slap in the face. “This unjustifiable increase stands in stark plight of our members,” Hlogwane wrote.
NUM’s letter outlines a pattern of broken promises by Denel management. Repeatedly, the union says, commitments to improve pay and conditions have been made and ignored. “Despite repeated engagements and representations by this union, it is our view that Denel has failed to present or implement any tangible and lawful plans to secure its recovery plan as a strategic state-owned asset,” the letter states.
Only a select few benefit
The union’s frustration is compounded by what it alleges is a management culture that rewards a select few while the majority are left behind. The R500,000 pay hike for a suspended employee isn’t the only example NUM gives—it also claims a contractor in the Finance department received a salary increase, and that new HR staff who have been with Denel for less than a year have also received unexplained pay bumps.
In contrast, NUM paints a bleak picture of life for most Denel employees. With some workers taking home paltry salaries, NUM says the company’s actions are only deepening distrust and hardship.
The letter puts it plainly: “This unjustifiable increase stands in stark plight of our members who take home as little as R5100.00 – R5900 per month.”
In other words, while management enjoys generous, even spectacular, pay increases, the rank and file are being left to fend for themselves on wages that can’t possibly sustain a family, let alone reward years of loyal service.
But the union’s anger doesn’t stop at pay. NUM alleges a breakdown of corporate governance at Denel. It says: “Denel divisions continue to operate without properly constituted structures within Denel Divisions, in contravention of sound corporate governance principles.”
Shareholder none the wiser
The union also draws attention to Denel’s lack of an approved Turnaround Strategy or Shareholder Compact. “Denel continues to operate without an approved Turnaround Strategy or Shareholder Compact, at least not to our knowledge as the Union, contrary to obligations owed to the Shareholder and the public.”
Such failings, NUM argues, only make it easier for alleged irregularities—like the massive salary increase for one employee—to go unchecked. “The alleged misrepresentation of Denel’s financial position, including profits declared in Parliament, erodes trust and may constitute a breach of fiduciary duty.
NUM’s letter goes further, alleging that disciplinary and suspension procedures are used to target employees not aligned with management. “It is alleged that suspensions and disciplinary measures are imposed disproportionately on individuals perceived not to be aligned with your office, amounting to victimization,” the union writes.
The union claims the Internal Audit Department “has exceeded its lawful mandate, weaponizing policy against subordinates in a manner inconsistent with principles of natural justice and fair labor practice.” Even more damning, NUM alleges that the office of the Chief Executive: Audit (CEA) “has further been implicated in irregular practices, including attempts to secure a salary increase of nearly 30% outside established processes, reflecting nepotism and abuse of authority.”
NUM ends its letter with a demand: “In the circumstances, NUM hereby demands that you provide a formal and comprehensive response, setting out the measures you intend to adopt to remedy the above violations, since our members have lost trust and confidence in your leadership.”
Ultimatum
The union warns that unless the company acts swiftly, it will escalate the matter to shareholders and authorities. “You are further placed on notice that, given your persistent refusal or failure to meet with our representatives in good faith, NUM reserves its rights to escalate this matter to the Shareholder and other competent authorities for urgent intervention,” the letter reads. Unless Denel responds, NUM says it is ready to “exercise all rights available under law, including but not limited to collective action, formal legal proceedings, and referral to external regulatory authorities.
Denel’s ongoing crisis, as painted by NUM’s letter, is one of deepening inequality. On one side, a small group of managers and contractors allegedly enjoy extraordinary pay hikes—even when suspended or newly hired. On the other, long-serving workers are left with wages so low they verge on the absurd.
The contrast couldn’t be starker. While Denel’s top brass allegedly secure massive increases, those on the shop floor are expected to make do with less and less. For NUM, this is simply intolerable. Their letter to Denel’s CEO closes with a clear message: the time for talking is over, and unless something changes, the union will act.
As Denel’s management faces these serious questions, one thing is certain: the gap between the boardroom and the shop floor has never been wider.
At time of publication, Denel had not responded to NUM’s demands.
