<\/p>\n
The National Union of Mineworkers (NUM) has issued a strongly worded statement against De Beers after the diamond producer announced plans to pause production at its Venetia Mine in Limpopo for two years.<\/p>\n
This is part of efforts to save cash as the miner battles against a changing market.<\/p>\n
Read:
De Beers to shutter SA diamond mine to save cash
De Beers makes sweeping cuts to its elite diamond-buying club<\/p>\n
The move, affecting the country\u2019s biggest diamond mine, includes the issuing of a Section 189A notice \u2013 threatening the livelihoods of more than 1 100 permanent employees at De Beers and a further 80 at De Beers Sightholder Sales South Africa (DBSSSA), the local arm responsible for the sale and beneficiation of rough diamonds for authorised bulk buyers.<\/p>\n
\u201cThe NUM views this announcement as a devastating blow to workers, their families and the communities that depend on Venetia Mine and DBSSSA for survival,\u201d the union\u2019s diamond sector chief negotiator Masibulele Naki said on Tuesday.<\/p>\n
\u201cIn total, 1 214 workers now face retrenchment.\u201d<\/p>\n
Naki said NUM, the majority union at De Beers, is deeply disturbed by how management has communicated its decision, attempting to portray it as \u201ca sudden and unavoidable crisis\u201d when the company has long been aware of the challenges facing the diamond industry.<\/p>\n
De Beers has not confirmed how many jobs could ultimately be affected.<\/p>\n
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\u201cWorkers cannot be treated as disposable tools that are discarded whenever companies face economic pressures,\u201d Naki added, suggesting there was no prior attempt to engage with union leaders on the decision before moving ahead with the proces.<\/p>\n
The union believes the company has a responsibility to exhaust all possible alternatives before considering retrenchments.<\/p>\n
\n\u201cThe salaries of workers are not the cause of the current difficulties facing the company. Therefore, workers\u2019 wages, jobs and livelihoods cannot become the first target whenever management seeks to reduce costs.\u201d<\/p>\n<\/blockquote>\n
The union has called on De Beers to urgently consider viable alternatives, including:<\/p>\n
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- Retraining and upskilling programmes;<\/li>\n
- Temporary job preservation measures;<\/li>\n
- Reducing non-essential expenditure; and<\/li>\n
- Reviewing executive and management costs.<\/li>\n<\/ul>\n
It has also urged the Department of Mineral and Petroleum Resources, the Department of Employment and Labour, and organised labour to intervene to help prevent large-scale job losses.<\/p>\n
\u201cThe union will participate fully in the consultation process and will mobilise all available organisational, legal and collective bargaining resources to defend our members,\u201d Naki said.<\/p>\n
\u201cNUM will not stand by while workers are sacrificed for corporate convenience.\u201d<\/p>\n
The mine accounts for 40% of South Africa\u2019s annual diamond production.<\/p>\n
Restructuring<\/strong><\/p>\n
Since 2024, De Beers has been streamlining its business in line with a strategy to reduce costs, divest non-core assets and prioritise investment in areas it believes will create the most value.<\/p>\n
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So far, it estimates that more than $100 million (around R1.6 billion at the current rate of exchange) of annual overhead costs have been cut down from the business.<\/p>\n
Simultaneously, De Beers has reinvested in natural diamond marketing to support the industry\u2019s efforts to grow natural diamond demand, launching new large-scale campaigns.<\/p>\n
It said global consumer demand for natural diamond jewellery returned to growth in 2025, with sales through US independent jewellers continuing to improve into the first quarter of 2026, driven by higher-value diamonds.<\/p>\n
On the supply side, it said global rough diamond production is declining, with several producers closing mines during 2026.<\/p>\n
\u201cWhilst the increasing rarity of diamonds and the emerging signs of improvement in consumer demand are likely to support longer-term value creation, rough diamond trading conditions are expected to remain challenging in the near-term due to cyclical and industry-specific factors,\u201d De Beers said.<\/p>\n
The proposed action at Venetia mine follows the decision earlier this year to suspend the Tuzo Phase 3 expansion project at its Gahcho Ku\u00e9 mine in Canada.<\/p>\n
Read: De Beers makes deep diamond price cuts for shrinking buyers club<\/p>\n<\/p><\/div>\n
#Union #hits #Beers #retrenchment #fears<\/p>\n","protected":false},"excerpt":{"rendered":"
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