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Burden on DeBeers, Government to End Botswana Diamond Dispute

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14 August, 2005ICEM News release No. 39/2004

The ICEM is calling on principals behind Debswana, the diamond mining enterprise of Botswana, to step in and resolve the remaining issues in the bitter dispute between the company and affiliate Botswana Mining Workers' Union (BMWU).

Debswana, encompassing four highly profitable mines, is jointly owned by global diamond concern DeBeers and the government of Botswana, which also controls 15% of DeBeers.

On 23 August, about half of Debswana's 6,000 workers struck the mine sites over a pay and bonus offer that fell far short of what was granted salaried staff. The company responded by issuing termination notices to 444 strikers, as well as eviction notices to many of the strikers who reside in company-subsidized housing near the mine sites.

In late July, Debswana secured an industrial court ruling declaring any strike illegal. The miners who struck, acting without BMWU consent, were angered that the inferior pay and bonus offer was withdrawn from the bargaining table after leadership rejection, as well as the industrial court ruling which they considered one-sided.

Following the strike, Debswana management sought and received contempt of court citations for some 33 officers of the three BMWU branches at the four sites and national BMWU leaders. A hearing on the matter is scheduled for 2 September with the company showing no willingness to soften its stand despite several attempts by BMWU to re-enter dialogue, efforts rejected by Debswana managers. A legal decision against the BMWU and the branch leaders-all of whom work for Debswana-will have the effect of shutting down the union.

"Our information from several sources tells us that neither DeBeers nor the government of Botswana has interceded in efforts to resolve this dispute," said ICEM General Secretary Fred Higgs. "In good faith and also to prevent this dispute from escalating to other work sectors in Botswana, we call on Debswana management in coordination with DeBeers and the government to immediately rescind the dismissals and eviction notices."

Higgs added the BMWU agreed on 27 August to accept the company's pay and bonus proposal. "It is now necessary for Debswana to recall the discharged workers and drop the court action so that both union and management can put this dispute behind, resume full operations and begin more cooperative labour relations."

Debswana's mines, which produce 30 million carats annually, are responsible for nearly 75% of Botswana's export earnings, 45% of all government revenues and account for one-third of the country's Gross Domestic Product.