De Beers, a subsidiary of Anglo American Plc, has reached a significant milestone by securing a five-year wage agreement with the National Union of Mineworkers (NUM), representing the workforce at its South African diamond operations.
Wage Agreement Details
Under this agreement, employees will see a 7% salary increase in 2023, followed by annual 6% increments in the subsequent years until April 30, 2028. This translates to a minimum entry-level basic wage of 17,630 rand ($954.30) per month, excluding allowances.
Employee Benefits and Ownership
In addition to the wage increments, the agreement opens the door for employees to participate in Anglo American’s employee share ownership plans, providing a valuable opportunity for ownership and financial growth.
Challenging Market Conditions
De Beers Group Managed Operations Managing Director, Moses Madondo, acknowledged the complexity of the wage negotiations. These discussions took place against a backdrop of challenging market conditions within the global diamond industry. However, the agreement offers much-needed stability and certainty for the workforce over the next five years, allowing De Beers to focus on expanding its underground mine at Venetia.
Positive Union Response
NUM, representing more than 1,500 workers at De Beers’ South African operations, expressed satisfaction with the agreement. NUM’s chief negotiator with De Beers, Masibulele Naki, affirmed that NUM members are content with the deal and have authorized the signing of the wage agreement in a separate statement.
Prevailing Challenges and Economic Uncertainty
In September, NUM had raised concerns about a potential strike at Venetia, citing breakdowns in wage talks. Industrial action at Venetia, where De Beers transitioned to underground mining in July, could have disrupted production. This transition followed the conclusion of a 30-year open-pit mining phase in December 2022.
The diamond industry currently grapples with economic uncertainty and subdued demand amid global economic challenges. Therefore, this wage agreement is a pivotal step forward for De Beers and its dedicated workforce.
