/ 12 August 2005

Union to declare wage dispute with De Beers

Diamond group De Beers Consolidated Mines (DBCM) on Friday confirmed that the National Union of Mineworkers has indicated its intention to declare a dispute with the company.

According to De Beers, this follows a series of meetings between the parties on annual substantive negotiations.

De Beers said in a statement that the company has tabled an offer of a 7,5% increase for its lowest-paid employees and a 7% increase for the rest of the bargaining unit.

“This lifts the company’s minimum wage to a highly competitive R3 333 per month. This is subject to the implementation of and continued engagement on a gain-sharing scheme.

“In terms of this offer, a guaranteed bonus pool of 4% will be made available for distribution to employees in the bargaining unit.

“The union currently seeks a 10% increase and does not wish to engage on gain sharing during these talks. The gain-sharing scheme is designed to return the five DBCM loss-making mines to profitability,” the company said.

De Beers said it is disappointed with the union’s response to its “generous and progressively structured proposal”, but is confident that a settlement will be reached and remains committed to a mutual-gains process of negotiation.

“The parties will meet as soon as possible in an attempt to settle this matter,” the company concluded. — I-Net Bridge