The National Union of Mineworkers (Num) vowed on Wednesday to “cut De Beers to size” for refusing to accede to its 15 percent salary increase demand.
“De Beers is a little fish in a very large pond,” said Peter Bailey, the union's chief negotiator at De Beers, the world's largest rough diamond producer.
“We will make them move. The Num moved mountains before.”
Bailey was responding to De Beers' warning that double-digit wage hikes could make its mines unprofitable, according to a report in Business Day on Wednesday.
De Beers outgoing chief financial officer Stuart Brown was quoted as saying: “We believe it is time to take a stand and ensure we keep our cost base under control because we are looking at the long-term sustainability of our operations.”
But Bailey said in a statement: “The Num notes De Beers'... 'taking a stand against wage increments' and vows to take a serious stand too that is likely to crumble and cut to size the company...
“De Beers recorded record sales in the first six months to end June of US3.8 billion with their production of 15.5 million carats, yet they are big-mouthed and refuse to budge on a 15 percent wage increment.”
Union members were currently striking in the diamond, gold and coal mining industries.
The strike in the diamond sector was in its seventh day on Wednesday. Num wanted 15 percent while De Beers had offered seven percent.
De Beers head of industrial relations Wayne Smerdon told Sapa the company wanted to resolve the dispute as soon as possible, but that its production had not ground to a halt because of the strike.
“We want to resolve this... it impacts on 1700 employees, probably 70 percent of whom are on strike. But our contingency plans have kicked in and we are still producing,” he said.
In the coal mining industry, a Num strike was in its fourth day. Num wanted a 14 percent increase and the Chamber of Mines was offering between seven and eight percent.
A gold mining strike was expected to start on Thursday, with Num workers demanding 14 percent and the employers offering increases between seven and nine percent.
“The Num notes the arrogance displayed by diamond giant De Beers and Harmony Gold in particular and warns that their pride will go before their fall, and that the glitter of both gold and diamonds will diminish with their arrogance.” - Sapa