Thousands of Unionized De Beers Employees to Strike over Wage Dispute
July 22, 08
The National Union of Mineworkers (NUM) in South Africa announced Monday that approximately 3,400 of its members, who are employees at De Beers Group Mining, would go on strike July 24 as a result of a wage dispute with the diamond miner.
NUM is demanding a 13.5 percent wage increase and on Monday rejected De Beers’ offer of an 11 percent raise over a two-year period.
De Beers confirmed that it had met with the union and said that its offer of 11 percent, which it says equates to a new minimum basic salary, was an increase from the initial 10.5 percent offered. The firm said it believes an “amicable resolution is possible” and “is open to continue discussions with the union.”
The company said in a statement that it is “disappointed that NUM believes its purpose might be better served by embarking on industrial action as such action will undoubtedly affect production on mining operations, and therefore affect employees who benefit from the company’s employee incentive scheme.”
The strike will potentially affect five of De Beers’ six land-based diamond mining operations in South Africa, for which NUM bargains, as well as its deep sea mining operations off the west coast of the Northern Cape.
“Since receiving the 48 hour notice from NUM of an intention to strike, we have implemented our normal procedures to endeavor to minimize the inevitable impact such action has on production,” De Beers Spokesperson Tom Tweedy told IDEX Online.
Earlier in the month, the Union declared disputes with De Beers, Sishen Iron Ore and Exxaro Coal. It also said that it would meet with De beers at the Commission for Conciliation, Mediation and Arbitration on July 21, the “failure of which the union will prepare itself for industrial action.”
“It is going to be a big, big fight,” said Eddie Majadibodu, an NUM negotiator. “Food prices had sky-rocketed, fuel prices and general inflation, there is just no room for peanuts increases and for that we are prepared for war” he says.