De Beers Averts Strike at S. African Mines by Raising Pay Offer

(IDEX Online News) – Workers at De Beers’ diamond mines in South Africa have gone back to work after the National Union of Mineworkers (NUM) and management agreed on a 9-percent pay rise.

Around 2,000 workers were to go on strike starting Friday night, but reached an agreement with De Beers Consolidated Mines (DBCM) just before the 7pm starting time, National Union of Mineworkers (NUM) negotiator Peter Bailey told AFP.

"We then struck a deal and signed a nine percent across-the-board increase," Bailey said.

The NUM had demanded a 13-percent wage rise, but De Beers offered six percent. De Beers also agreed to two extra days of leave a year, bringing annual leave to 23 days, with another two days to be added next year.

The strike would have hit the Voorspoed, Kimberley and Venetia mines as well DCBM’s rough diamond distribution outlet in the center of the country.

The South African mining industry in general is facing high tensions as unions call for higher wages. Companies say that falling demand for commodities worldwide and surging costs mean they are unable to meet unions’ demands. DBCM has 2,550 workers, with 1,300 represented by the NUM.

DBCM operations account for just over 15 percent of its De Beers’ global rough diamond production.