News Desk Reporter
More than 1,200 jobs could be affected as De Beers moves ahead with a restructuring process linked to plans to pause production at Venetia Mine in Limpopo for two years.
The National Union of Mineworkers (NUM) says 1,134 permanent employees at Venetia Mine and a further 80 employees at De Beers Sightholder Sales South Africa (DBSSSA) could face retrenchment after a Section 189A notice was issued.
The union has criticised the move, saying workers should not bear the impact of the company’s cost-cutting measures. It has called for alternatives to possible job losses.
NUM National Health and Safety Secretary and Diamond Sector Chief Negotiator Masibulele Naki said employees and the union should have been engaged earlier in the process.
“Workers cannot be treated as disposable tools that are discarded whenever companies face economic pressures. De Beers has known about the challenges confronting the diamond market for a long time. It is therefore disingenuous to present this announcement as a crisis. Workers and their trade union should have been engaged honestly and transparently long before a Section 189A notice was issued,” said Naki.
The union says consultations should focus on finding ways to preserve jobs rather than treating retrenchments as the only option.
It has proposed measures including retraining programmes, temporary job preservation initiatives, reducing non-essential spending and reviewing executive and management costs.
Naki rejected any suggestion that workers should carry the burden of the company’s cost-reduction plans.
“The salaries of workers are not the cause of the current difficulties facing the company. Therefore, workers’ wages, jobs, and livelihoods cannot become the first target whenever management seeks to reduce costs. Workers cannot compromise on salary cuts, nor can they be expected to carry the burden of protecting profits while executives continue to enjoy substantial benefits,” he said.
The NUM has called on the Department of Mineral and Petroleum Resources, the Department of Employment and Labour and other stakeholders to intervene.
The union says the consultation process should explore all possible alternatives before job losses are considered.
The NUM also warned that it would use available legal and collective bargaining processes to defend its members.
“The livelihoods of more than 1,200 workers and thousands of dependants are at stake. NUM will not stand by while workers are sacrificed for corporate convenience. The NUM will not be shocked and surprised if this is a strategy by the company to replace permanent workers with contractors, which is a strategy being used by mining companies around the world where they operate. We shall fight relentlessly to protect jobs and defend the dignity of mineworkers,” said Naki.
The possible retrenchments follow De Beers’ announcement of a wider restructuring programme aimed at reducing costs, streamlining operations and strengthening the company’s resilience.
De Beers said it intends to pause production at Venetia Mine for two years while rephasing capital expenditure on its underground project.
The company said the move is intended to reduce costs while supporting future production growth as business and industry conditions improve.
The diamond producer said it is engaging with stakeholders in line with relevant requirements and will support impacted employees while continuing to invest in its community and Social and Labour Plan commitments.
De Beers CEO Al Cook said the company was responding to challenging conditions in the diamond industry.
He said the changes were aimed at improving efficiency and supporting long-term value creation.
De Beers added that production levels at its other operations would continue and that previous production guidance remains unchanged.