Trade union Solidarity has accused Denel of using employee salary funds to pay bonuses to top management.
While Denel is locked in a protracted dispute with four trade unions about exemption from national wage increases, 49 top management members have been paid performance bonuses totalling R2,2-million, Solidarity spokesperson Jaco Kleynhans said on Wednesday.
Performance bonus payments to management members was discussed with the trade unions at a Denel labour forum late last year.
Individual contracts were concluded with management members to achieve certain targets. The seven Denel trade unions approved the process, which provided for management members who achieved their targets to receive bonuses in the 2006 financial year, while staff would receive bonuses the following year, said Kleynhans.
In the interim, Solidarity, the South African Chemical Workers’ Union (Sacwu), the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (Ceppwawu), and the General Industry Workers’ Union of South Africa (Giwusa) took Denel Munitions to the National Bargaining Forum for the Chemical Industry (NBCCI) in November 2006 to oppose the application for a 2,5% cut-back in the agreed wage increases.
An arbitration finding in April this year stipulated that the munitions manufacturer had to pay the increases contained in the national agreement, and that payment had to be made retrospectively from July 2006.
Denel was unhappy with this finding and the matter would be taken on review to the Labour Court soon.
”Solidarity believes firmly that Denel used its employees’ salary funds to pay bonuses to management members,” Kleynhans said.
”While Denel fights to pay its workers less than the amount stipulated in the national agreement on the grounds that finances are a problem, the company simultaneously pays exorbitant bonuses to management.
”Savings from the non-compliance with the national agreement are spent on profligate management bonuses.”
Solidarity did not object to the principle of incentive bonuses, but did object to the way in which these payments were made, Kleynhans said.
The bonuses were paid to management members at the end of July this year. – Sapa