South Africa's Denel discussing severance packages, salary cuts: Official

South African state arms firm Denel is holding talks with unions over voluntary severance packages, reduced working hours and salary cuts for some staff as it struggles to emerge from a financial crisis, a union official said.

Johan Botha, deputy general secretary for labour union Solidarity, said Denel management had told union officials on Monday that staff salary payments for October and beyond were at risk because of the severe liquidity woes the company is facing.

A Denel spokeswoman did not immediately respond to a request for comment.

(With inputs from agencies.)