20 March, 2025The National Union of Mineworkers (NUM) is fighting to save jobs after Petra Diamond Mine issued notices to retrench 468 workers at Finsch and Cullinan mines.
Petra Diamond attributes the market downturn—the longest in 30 years—to global conditions, China's economic slowdown and the rise of lab-grown diamonds. Additionally, the diamond mining company says there is debt refinancing, operational underperformance, cost reduction and restructuring as some of the reasons for the retrenchments. But the NUM, an IndustriALL Global Union affiliate, is not convinced by the company’s arguments.
“The NUM believes these justifications are pretexts to sacrifice workers and shield executives from accountability for operational failures. A counterproposal submitted by the NUM, designed to save the company six million rand (US$328,525) and avert retrenchments, was summarily rejected by Petra Mine management,” said Masibulele Naki, NUM chief negotiator in the diamond sector.
The NUM took Petra Diamonds to the Commission for Conciliation Mediation and Arbitration(CCMA) as part of its challenge to the retrenchments. Further, to alleviate the plight of the affected workers, the NUM signed a memorandum of understanding with Petra Diamond, to pay a R10,000 (US$550) each as relocation allowance to the affected workers. According to the union, the agreement includes a twelve-month recall clause and a committee will be set up to support the affected workers.
Other diamond mining companies that are retrenching workers include De Beers, which has given notice to 308 workers at Venetia Mine.
Further, the union is calling for urgent social dialogue that will include the Minerals Council of South Africa, diamond mining companies, the government and labour to address the crisis facing the country’s diamond industry.
Mpho Phakedi, NUM acting general secretary, expressed concerns over the retrenchments, not only in the diamond sector, but in mining in general. “Mine workers are facing a bleak future of poverty and unemployment. Retrenchment notices have been issued at Anglo Platinum, De Beers, Petra Diamonds, Murray and Roberts Mining and Seriti resources and thousands of jobs will be lost.”
“Diamond mining companies must always prioritize workers interests when faced with market volatility instead of rushing to retrench workers. They must seek business models that are sustainable and those that create and preserve jobs. Social dialogue with the unions is necessary to deal with challenges facing diamond mining,” says Glen Mpufane, IndustriALL Director for mining and diamonds.