South Africa’s NUM to Declare Wage Dispute after De Beers Talks Fail

South Africa’s National Union of Mineworkers (NUM) is planning to declare a wage dispute with De Beers Consolidated Mines Limited (DBCM) after the sides failed to reach an agreement following a series of meetings.

De Beers is offering a 7.5 percent increase for its lowest paid workers and a 7 percent increase for the rest of the bargaining unit.

This would increase its minimum wage to 3,333 rand ($525) per month, and is subject to the implementation of and continued engagement on a Gain Sharing Scheme. A guaranteed bonus pool of 4 percent will be made available for distribution to employees in the bargaining unit.

The NUM is seeking a 10 percent increase and does not wish to engage on gain sharing during the talks, according to De Beers. The Gains Sharing Scheme is designed to return the five DBCM loss-making mines to profitability.

DBCM said it was disappointed with the NUM’s response to this “generous and progressively structured proposal, but is confident that a settlement will be reached and remains committed to a mutual gains process of negotiation”.

De Beers said the sides would meet as soon as possible in an attempt to settle this matter.