Attempts to Avoid Botswana Diamond Mine Strike

Botswana, the world's largest diamond producer, is facing a possible mineworkers strike if union and Debswana negotiators fail to settle wage negotiations.

The sides have been negotiating new wage agreements and recently met an impasse. Debswana reportedly offered the Botswana Mine Workers Union (BMWU) to increase the cost of living allowances by four percent.

As negotiations progressed the mining company, a 50/50 partnership between the Government and De Beers, raised its offer to 10 percent and a one time production bonus of 5 percent of annual salary, in addition to a housing allowance of 400 Pula ($85.60) to 1,100 Pula ($235.40) per month.

The union, which at first demanded workers receive a 30 percent increase in the cost of living allowance, is currently willing to accept a 16 percent increase with a 25 percent production bonus.

On Friday Botswana President Festus Mogae pleaded with the union to not send the four diamond mines 5,000 miners on strike.

85 percent of Botswana’s export income is from diamonds, accounting for 50 percent of the nation’s revenues. Its mines produce 30 million carats of diamonds annually, nearly a third of the world’s production.

“We view the threat of a strike as extremely serious as it would obviously interrupt production and hence have a negative effect on income going to shareholders,” Debswana said as talks met an impasse.

Talks, it seems, are heading toward a toughening of stands as each side is showing no intention to budge.

A Debswana spokesman has reportedly told workers that strikers will not be paid and might face disciplinary actions, even dismissal, if the strike will be ruled illegal.

Meantime, the Commissioner of Labor says the talks have failed and is allowing the sides to meet in the Industrial Court, but suggested they choose to go to arbitration instead. At last report the union has rejected the offer, bent on striking instead.