/ 24 July 2008

Wage agreement prevents strike at De Beers

The National Union of Mineworkers (NUM) has called off a strike over wages at diamond miner De Beers.

NUM negotiator Peter Bailey said on Thursday an agreement had been reached.

”We reached an agreement in principle at 12.20pm this [Thursday] afternoon. We have accepted an increase of 12% for 12 months.”

The wage agreement will be effective from May 1 this year, Bailey said.

De Beers spokesperson Tom Tweedy confirmed the strike had been called off, and said the company would later issue a statement detailing the wage settlement.

The NUM, which represents 3 400 workers at De Beers, had announced a one-day strike beginning on Thursday evening to press its demands for a 13,5% wage increase.

De Beers, which is 45% owned by mining group Anglo American, had offered 11% over two years.

The union called for the strike after an arbitration authority failed to successfully mediate the wage dispute.

Miners in South Africa have been demanding double-digit wage increases to soften the blow of rising fuel, food and electricity prices and a string of interest-rate hikes that have made house and car loans more expensive.

Workers across the country have started a series of rolling strikes to protest the cost of living. The powerful Congress of South African Trade Unions is spurring the protests, which will culminate in a national strike next month. — Reuters, Sapa