De Beers Agrees Pay Deal with Venetia Mineworkers
November 06, 23
(IDEX Online) - De Beers has averted the threat of strike action by agreeing a five-year pay deal with the National Union of Mineworkers (NUM).
A walkout by a third of the workforce - around 1,500 NUM members - would have hit production at the Venetia mine, which accounts for 40 per cent of De Beers' output in South Africa.
The NUM was demanding a 9 per cent wage increase, against De Beers' offer of 6 per cent.
Months of stalemate ended last Thursday (31 October) with an agreement on 7 per cent increase this year and 6 per cent annually until April 2028.
De Beers said the minimum entry level basic wage will now be 17,630 rand ($954) per month.
"We are pleased that we reached a favourable outcome following a very tough negotiation process against the backdrop of challenging market conditions that continue to have an adverse impact on our business and the overall diamond industry," said Moses Madondo, De Beers Group managed operations managing director.
Venetia resumed production in June after a $2.2bn switch from open-pit to underground mining, which is expected to extend its life until at least 2045.
Pic courtesy De Beers of Venetia mine