Solidarity welcomes the wage increase for loyal employees of Denel, but more work to be done

The trade union Solidarity welcomes Denel’s decision on a new wage agreement granting employees across the board a 5.5% increase, backdated to 1 April 2026.

According to Solidarity, this is a meaningful step towards providing much-needed recognition to employees who have endured significant uncertainty, challenges, and sacrifices at Denel over many years. According to Derek Mans, the agreement sends an important message to employees who continued doing their jobs under difficult circumstances and tried to keep the arms manufacturer afloat.

“Denel still faces serious financial and management challenges, and we recognise that there is still a long road ahead. However, this agreement is an important step towards restoring employees’ dignity and recognising people who, despite years of uncertainty, have remained loyal and continued to do their work,” says Mans.

Solidarity further believes the agreement highlights the union’s willingness to work constructively with Denel as an employer, and particularly its determination to protect and advance the interests of its members as employees.

“Our approach remains unchanged — one of co-operation where possible, provided that it protects our members’ interests. At the same time, we want to support realistic and workable solutions for Denel’s future. “We are cautiously optimistic; however, practical and implementable decisions still need to be taken regarding the company’s direction and future,” says Mans. Solidarity further believes there are still signs that divisions within Denel can succeed. One division recently delivered a strong financial performance, with ex gratia bonuses and salary adjustments that were even backdated.

According to Solidarity, this demonstrates that islands of excellence still exist within the company. Solidarity also welcomes the renewed interest by Omusha Firearms in investing in Denel’s PMP division.

“These developments create hope and room for constructive and future-focused discussions about Denel. South Africa still needs its strategically essential defence sector, but this requires responsible management, credible partnerships and difficult decisions,” says Mans.

Mans says Solidarity recognises that substantial work undoubtedly still lies ahead and believes issues such as maladministration and its serious consequences must be addressed with even greater urgency.

“Nevertheless, this wage agreement is a positive step in the right direction and something that contributes to positive momentum towards stability,” says Mans.