Mining Weekly quotes an announcement by diamond mining giant De Beers on Friday that the National Union of Mineworkers (NUM) and diamond giant De Beers Consolidated Mines Limited (DBCM) have reached a wage agreement.

De Beers and NUM agreed on a 9% increase for all employees and the lifting of the basic monthly pensionable minimum wage to R5, 000. According to the announcement, the increase will raise the scale of pay for diamond miners in the A and B bands to between a minimum of R5, 000, and a minimum at the upper B band of R 9,277 a month.

The mining union’s initial demand was for a 15% wage increase from the giant diamond miner.

The negotiations followed ongoing consultation between the NUM and the DBCM in the wake of the economic downturn, particularly in economies of major diamond consuming markets.

DBCM MD David Noko stated: “As a part of managing the impact of the economic downturn the company took various steps including a position to pay no increments or bonuses in 2009. DBCM made the necessary deep cuts in capital and operating costs and we are now in a better state going forward than we were in early 2009.”

NUM chief negotiator Peter Bailey stated: “As NUM and De Beers, we have a joint responsibility to steer this ship called De Beers and the Diamond Sector as a whole through the icebergs and ensure it is in safe water before we again go at each other.”

He added: “Given these realities this is a good settlement and when the ship is safe we will do even better. NUM and De Beers in particular and the diamond sector in general, need each other and are interdependent on each other for their survival. Watch this space when things turn around.”