LIMUSA rejects the ridiculous wage offer and condemns the anti-workers behaviour by Denel Land Systems Management

The Liberated Metalworkers Union of South Africa (LIMUSA) is angered by the anti-working-class behaviour of Denel Land Systems Management and their attack on workers. We are shocked by the behaviour of the management around the wage negotiations and their persistence in proposing offers which are an insult to workers and their families.

The management of Denel Land Systems has been reactionary from the beginning of the negotiations and has consistently fuelled anger amongst workers. The management proposed 3.8% for scheduled workers and 0% for non-scheduled workers at the beginning of the wage negotiations. We have always found it ridiculous and provocative that the management will consider offers which are below the inflation rate and the Consumer Price Index (CPI) as logical. It is shocking and provocative in our view that an entity of the state amidst the current economic challenges would respond to the workers, whom are the primary source of production, with an offer which ignores and dismiss the current economic reality.

LIMUSA wished to state it categorically clear that we shall never allow the current neoliberal onslaught on workers to be left unchallenged. We have now reached a point of cul de sac with the State-Owned Entity (SOE) where we are willing confront the management head on in the battle field.

We reject the proposed offer by Denel Land Systems which in our view is not different from the initial offer of 3,8% for scheduled workers and 0% for non-schedule workers. We will never allow anything which will not enable workers to cope with the current economic challenges while bosses are earning high salaries and giving the son of a Premier a bursary of 1 million Rands using an unknown criterion.

We put our demands forward based on the following logic which to the management of Denel Land System should be common sense unless if they are incompetent to lead the entity.

  1. The rise of fuel levy by R0.52. The levy affects workers who uses transport to travel to the same entity to generate income by using their labour in giving the entity sufficient production for the entity to run, which they also misuse the funds by issuing bursaries to children of the rich.
  2. The increase of fuel every month.
  3. The VAT has gone up from 14% to 15% meaning the cost of living is incredibly and unbearably high (The actual increase of VAT is 7.14%). This has affected all prices from cell phone costs, accommodation , food, school fees to transport fees.
  4. CPI (Consumer Price Index) is forecasted at 5.3% for 2018-2019 financial year.
  5. The South African government has already defined the maximum annual income for the poor which is R350 000 pa.
  6. The South African government is also working tirelessly to bridge the economical gap between the rich and the poor, especially in State Owned Entities, like Denel.

It is for the above reasons that LIMUSA as the majority union at Denel land Systems initially proposed the following offer for the  2018/19 salary increase:

Group 1 (R0 – R350 000 pa)                  : 12%

Group 2 (R350 000 – R1 million pa)        : 10%

Group 3 (R1.01 million pa and above)    :  8%

LIMUSA has now put a final offer to Denel Land System of which we are willing to stop production at the entity if this offer is not considered. We have come to a point whereby we do not have confidence in the capacity of the Denel Land Systems Management and we are willing to confront the arrogance of the management with equal force.

Clause 13 of the Recognition agreement talks about Dispute resolution.  Clause 13.2 mentions that if the parties are unable to resolve any issue which is dealt in the terms of this agreement either party may declare a dispute by submitting a written statement of the issues giving rise to the dispute together with the required settlement.  If the dispute is not resolved, the parties may then according to Clause 13.2.1, Seeks the assistance of the bargaining council/CCMA or follow the voluntary arbitration process.

We have therefore reached the deadlock on the following issues:

  1. Wage increase.
  2. Back payment.

We are going to picket at the State-Owned Entity until the above-mentioned issues have been resolved. We are at a point where we are willing to down tools until the plight of workers receives the necessary attention which it deserves. We shall never allow the Thuma Mina brigade to harness neoliberalism at the expense and wellbeing of metal workers.


Issued by LIMUSA.

For more information contact:

Cedric Gina (General Secretary)

083 364 7977

Mawonga Madolo (Deputy General Secretary)

083 613 8610

Dloze Matooane (National Spokesperson)

065 819 6793 or email: