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De Beers, NUM pay talks fail

Johannesburg - De Beers and the National Union of Mineworkers (NUM) have failed to reach a wage agreement, the diamond mining company said on Wednesday.

De Beers met the NUM at the Council for Conciliation, Mediation and Arbitration (CCMA) on Wednesday after the union declared a dispute early in the negotiations on June 12.

"The CCMA was today unable to mediate the dispute and issued a certificate to this effect," said De Beers' lead negotiator Wayne Smerdon.

This meant the union would be able to give the company a 48-hours' notice of its intention to embark on protected industrial action, and the company would be able to give the union 48-hours' notice to lock out union members, he said.

"We had agreement in the CCMA on the broader issues in the wage negotiation. However, several demands from the union, which all have high cost implications... led us to a point where we could not agree on a settlement."

He said the company had placed on the table a competitive offer, sustainable into the future.

At the time of going to the CCMA, the NUM was demanding a 13% increase across the board and other benefits, which De Beers said amounted to 34% cost increase.

Comment from NUM could not be obtained.

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