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RAPAPORT... De Beers avoided a strike Thursday when the National Union of Mineworkers (NUM) accepted its proposal for a 12 percent wage increase for its South African workers.
NUM had rejected De Beers’ previous proposal of an 11 percent rise saying its members would start striking at 6 p.m. Thursday if the issue was not resolved. NUM was demanding a 13.5 percent increase.
NUM chief negotiator with De Beers, Peter Bailey, confirmed with Rapaport News that the parties had agreed at the last minute on Thursday afternoon to the 12 percent rise, which would be implemented at the end of August and back-dated to the beginning of May.
“We are happy with the outcome of the negotiations, that we were able to avert a strike,” Bailey said. “Most important for us was that we were able to maintain our relationship with De Beers because you always have to think beyond the present situation and we look forward to working with them in the future.”
According to a De Beers statement about the agreement, the new entry level salary before benefits would be ZAR 4,459.
“The company offers employees additional benefits and an incentive bonus scheme based on exceeding targets at the employees own mine; a bonus which is payable on a quarterly basis,” De Beers explained.
De Beers employs 4,198 people at seven mines in South Africa – Venetia, The Oaks, Voorspoed, Finsch, Namaqualand, Kimberley Mines, and the South African Sea Area (SASA) operation – of which 2,612 are NUM members.
NUM negotiates for five of the six land based operations, excluding Voorspoed which has just been commissioned; and in a separate forum for employees at SASA.
“The company looks forward to a fully productive year and a stable relationship with the union,” De Beers spokesperson Tom Tweedy said in the statement.
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