State-owned arms dealer Denel does not have enough money to pay its staff their December salaries, union officials told The Times on Tuesday.

An emergency meeting between trade unions Solidarity, Uasa, the National Union of Metalworkers, Denel CEO Zwelakhe Ntshepe and CFO Odwa Mhlwana did not bring any clarity on the fate of some 4000 employees.

"We have been told [by the Denel CEO and CFO]: 'We don't have money'," said Uasa spokesman Willie van Eeden. "The cash shortage had been a long time coming."

Solidarity deputy general secretary Deon Reyneke said his shop stewards reported that Denel needed about R350-million to pay both suppliers and December salaries - but had only R60-million. He said no clear answers were given in the meeting.

"The fact is [Denel management] could not answer the question: 'Will members be paid on December 22?'"