De Beers is currently in negotiations with the National Union of Mineworkers (NUM) to secure a five-year wage agreement to prevent any potential strike disruptions at its Venetia Mine as well as its sorting and sales operations in South Africa.
It said that wages are the only outstanding issue following a meeting with the union on Wednesday, which was held under the auspices of the Commission for Conciliation, Mediation, and Arbitration (CCMA).
In South Africa, labour laws stipulate that disputes must be taken up with the CCMA, which facilitates a 30-day conciliation process (which can be prolonged with the agreement of both parties involved).
De Beers is optimistic that a long-term agreement can be reached with the NUM through their ongoing dialogue with the union and its staff.
"We believe that a five-year agreement will provide a measure of certainty, particularly against the backdrop of the transition from open pit mining to the underground mine at Venetia Mine and the recent move of our sorting and valuation business from Kimberley to Johannesburg," it said in a statement.
"As the diamond industry, we are also faced with challenging market conditions that are continuing to have an adverse impact on our business."
NUM announced last Tuesday that it had begun mobilising its 1,500 members over a wage dispute with De Beers.
The union was seeking a 9% raise, while the diamond mining company was only offering 6%.
The union said it had declared a dispute with the CCMA after four months of negotiations, adding that its members would not accept less than 9% despite having negotiated down from a demand of 25%.
Because of the rising costs of necessities like food and gas, the union declared that it was ready to initiate the “mother of all strikes”.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
