De Beers signs five year wage deal with NUM

De Beers: Venetia diamond mine

DE BEERS on Thursday announced a five year wage deal with the National Union of Mineworkers (NUM) for employees at its Venetia Mine and De Beers Sightholder Sales South Africa.

The agreement followed months of negotiations facilitated by the Commission for Conciliation, Mediation and Arbitration and will see employees receive an increase of 7% in 2023 followed by 6% increases in subsequent years of the agreement to April 2028.

“The agreement provides a measure of certainty to our employees for the next 5 years as we focus on ramping up the underground mine at Venetia, which is set to extend the life of mine to at least 2046,” said Moses Madondo, MD of De Beers Group.

De Beers said the minimum basic wage at an entry level, excluding allowances for shifts and housing, has been increased to R17,630 per month. The agreement also allows for Employee Share Ownership Plans (ESOP) participation. Employees will also take part in Anglo American’s current South African ESOP from 2023 to 2025.

“We are pleased that we reached a favourable outcome following a very tough negotiation process against the backdrop of challenging market conditions that continue to have an adverse impact on our business and the overall diamond industry,” said Madondo.