/ 4 April 2008

De Beers urges NUM to engage over grievances

De Beers on Friday urged the National Union of Mineworkers (NUM) to ”engage” with it, after a protest by Cullinan diamond mine workers over gain-sharing, health and safety, and discrimination.

De Beers claimed that NUM had made errors of fact, including referring to mines the company no longer operated and unsubstantiated allegations which it did not accept.

”We therefore encourage the union to engage with us at the mine on matters which we can address,” it said in a statement on Friday.

On Thursday, the NUM charged that De Beers had refused to give mineworkers equal gain-sharing.

”[Cullinan mine] workers demand a gain-share payment of 34% or more as the company confirmed that targets have been exceeded,” said spokesperson Phillip Manchidi.

”Mineworkers further demand that health and safety be improved at the mine and that the company stops discriminating against employees with occupational and chronic diseases.

De Beers, in a response on Friday, said workers at its Cullinan diamond mine received 14% bonuses in 2007 based on the mine’s financial performance

”De Beers awards performance bonuses to employees on its mines where the particular mine exceeds the financial performance targets set for that mine,” said spokesperson Tom Tweedy.

”This system enables mine workers to benefit from their direct contribution to their own mine and the bonus is distributed across the mine employee base with some safety-related conditions applicable to reward best safety practices, and discourage poor safety performance.

”The company bonus scheme is termed a ‘gain-share scheme’ and annual bonuses may be paid in terms of the scheme, to which details the NUM has been party since 2005.

The bonuses paid to miners at the Cullinan mine had recognised their contribution in exceeding the mine’s financial performance target, ”which target or reward is obviously not related to the performance at mines elsewhere”.

De Beers said that some of its mines exceeded targets and received greater bonuses. Where targets were not met, no bonus was awarded.

”The calculations are made in a set manner and one cannot adopt different criteria after the fact,” said Tweedy.

Reacting to the NUM demand that the company improve its labour relations and stop its ”arrogance” in dealing with employees, De Beers said it was proud of the labour relations it had on its mines.

At Cullinan, it would apply legislation which afforded protection to employees when the mine was sold as a going concern, rather than laws which would result in forced retrenchments, it said. – Sapa