/ 31 August 2004

Debswana: ‘Two weeks to settle with the union’

Botswana’s diamond mines are still operational: 26 tonnes of explosives were detonated and blasted 150 000 tonnes of earth into the air — the dust rising 250 metres — which exposed more diamond bearing ore at Orapa mine.

Orapa is one of the three diamond mines hit by illegal strikes over deadlocked pay award negotiations, now entering its second week.

It is the longest running strike to date at any of the diamond mines.

At Orapa and its satellite mine Letlhakane, 1 100 workers are on strike out of a workforce of 3 300. At the Jwaneng mine 900 miners out of 2 000 are on strike.

Industry sources said on Monday that the mining company Debswana, a 50/50 partnership between De Beers and the Botswana government, would fail to meet its 2004 production and sales targets, both 30-million carats, by up to 1,5%.

”Production for 2004 sales stops at the end of September to allow time for recovery, sorting and despatch to the DTC [Diamond Trading Company] before the end of the year. As soon as the diamonds are sold to the DTC, the proceeds go into the sales figures although they may not be sold into the trade for several months,” said Debswana deputy managing director Mike Wittet.

”We have two weeks to settle with the union [Botswana Mining Workers Union -‒ BMWU] if we want to meet target. In this second week of the strike, both sides will be constantly reassessing their positions.”

The third week would be toughest.

”Only the strongest will survive a third week,” Wittet said.

Orapa mine manager Mike Hunt admitted: ”A fourth week would see us under pressure.”

There was virtually no chance of the 30-million group target being exceeded as had been talked about three months ago.

Orapa general manager Len Makwinja confirmed there had been production losses, but said the mine could sustain the rate of production it was now achieving.

”We slowed down, but we can sustain what we are doing now,” he said.

Ore had been fed to plant number two, a high rate producer, and it had exceeded its rate from 8 500 tonnes a day to 10 000 tonnes — but the number one plant was running behind full rate.

”We are feeding from production stockpiles and waste rock which still contains diamonds, not at our preferred grade, but there’s a lot of it,” Makwinja said.

Corporate communications manager Kabelo Binns said essential services — firefighting, security, hospitals — had been affected by the strike.

The union has claimed that as a result the mines were not safe and there had been an increase in accidents.

”That is not true — we have not had any accidents,” Wittet said.

Of the 2 400 strikers, 400 had been essential service workers — 200 each at Orapa and Jwaneng.

”They were dismissed,” Hunt said and had been largely replaced, ”but the new employees need training before they become fully productive”.

The union said there had been no further negotiations on ending the strike.

General-secretary Donald Lobotse said the union position was unchanged: ”We will sign and accept the company’s offer, if it agrees to reinstate the 400 strikers, essential service workers, who have been fired.”

The offer on the table as annual wage negotiations snagged in July was a 10% across the board increase in living allowances, 10% of 2003 salaries as a production bonus with a minimum payment of 3 500 pula.

Lobotse believes it is now the new workers Debswana has hired that is the stumbling block.

”If those who have been fired get their jobs back, what happens to the new employees?” he asked.

Debswana human resources manager Jacob Sesinyi confirmed: ”There is a specific issue regarding those employees engaged in essential services who were taking part in the illegal strike,” he said.

Before the workers downed tools, industrial court judge president David de Villiers ruled any potential strikes would be illegal. The workers were warned on Saturday of contempt charges if they stopped work. The union and 33 strikers — all union officials — were subsequently called to court to answer contempt charges.

On Friday, De Villiers acquiesced to a request by the union and Debswana and adjourned the contempt of court hearing, in which the company seeks custodial sentences, to September 2.

Debswana’s view is that workers were told they would be fired if they went on strike.

”The disciplinary process has started, strikers are being fired. Once the process reaches a faster pace and we start to hire new workers, Debswana cannot be responsible for what happens to them,” Sesinyi said.

Strikers at court during the contempt hearing said the workers had been dismissed instantly and they and their families ordered to quit mine housing by the end of August. – Sapa