JOHANNESBURG - State-owned arms maker, Denel, has warned employees it will not be able to pay salaries in January.
Workers at two key divisions will be affected.
This is despite a 2-billion-rand government bailout to stabilise the company.
The payday delay affects employees at PMP and Denel Dynamics.
Trade unions Numsa and Solidarity are condemning the move, calling it unacceptable.
They say the absence of a permanent board is worsening financial and governance failures.
The unions are also slamming repeated delays in implementing turnaround plans.
Workers say the announcement has left them distressed and worried about providing for their families.
They are demanding urgent action from management and Treasury to secure funds.
Cosatu has also weighed in, saying failure to pay salaries violates labour laws and must be addressed.