Jobs cuts loom at diamond mines

Johannesburg - More than 1 200 job cuts are looming in South Africa's diamond mining industry, trade union Solidarity said on Friday.

"While retrenchments are already planned across all industries, the relatively small local diamond industry is being severely affected," the trade union said in its latest weekly newsletter Solder.

Solidarity said it has already received retrenchment notices from five diamond companies, with three of these issued only this week.

"This brings to 1 200 the number of planned retrenchments in the local diamond industry," the trade union said.

Solidarity said notices were received this week for the retrenchment of about 500 employees at Sandstraat Eksplorasie, Diamond Core Mining and Exploration, and Rockwell Diamonds.

Last year notices were issued for the retrenchment of more than 700 employees at Namakwa Diamonds and Petra Diamonds.

News has also emerged that diamond giant De Beers is looking at retrenchments across its operations, including South Africa.

The company is reportedly planning to cut 1 415 jobs. It is unclear at this stage whether these only apply to De Beers' South African operations, where it employees 3 500 people.

De Beers spokeswoman Lynette Gould told the National Jeweller Network on Thursday that De Beers would endeavour to minimise job losses wherever possible through innovative solutions like production holidays, fewer shifts, part-time and flexible working.

"Diamond companies blame the planned retrenchments on the sharp drop in diamond prices since October last year. However, Solidarity believes that the current diamond prices compare favourably with those recorded in the first half of 2008," Solidarity said.

"October was, however, a very good month for diamond prices and cannot really be used as a benchmark for prices in general," it added.

- I-Net Bridge