The National Union of Mineworkers (NUM) has expressed its solidarity with more than 1,800 miners facing possible retrenchments and uncertainty at the Finch Diamond Mine and Cullinan Diamond Mine in Kimberley, Northern Cape.
This follows the decision by mining company Pedra Diamonds to appoint a business rescue practitioner to oversee operations at Finch Mine, while also issuing a Section 189A notice at Cullinan Mine.
NUM Petra Diamonds Chief Negotiator and National Health and Safety Secretary, Masibulele Naki, rejected what he described as an attempt by employers to shift the burden of business challenges onto workers. He argued that employees have consistently contributed to the company’s profitability and sustainability through their labour, sacrifice, commitment and productivity over the years.
“It is unacceptable for companies to continuously point fingers at labour costs whenever they face operational or financial challenges. Workers are not a liability on a balance sheet; they are the creators of value and wealth in the mining industry. Without workers, there is no production, and there is no profit,” Naki said in an interview with YOU FM Newshour.
He warned that management’s actions could affect nearly 1,800 workers.
“The business rescue process at Finch places almost 689 workers in a state of uncertainty, while the Section 189A notice at Cullinan threatens the jobs of roughly 1,090 workers. Combined, these developments place nearly 1,800 livelihoods at risk and threaten the economic stability of mining communities that depend on these operations,” he explained.
Naki further stated that the union is deeply concerned about a growing trend in the mining sector, where retrenchments and business rescue processes are increasingly used as a first rather than last resort.
“The narrative that labour is the highest cost to the company must be challenged. Executive remuneration, management decisions, declining investment strategies, market fluctuations and operational inefficiencies also contribute significantly to the financial position of mining companies. Workers should not be expected to pay the price for challenges they did not create,” he argued.
The union has called for urgent government intervention.
“We firmly believe that the current crisis requires urgent intervention by government at the highest level. The mining industry remains a strategic pillar of the South African economy and cannot be left solely to market forces,” the NUM Chief Negotiator appealed.
The union has also pledged to protect workers’ interests throughout the process.
“The NUM will participate fully in all consultation processes and vigorously defend the interests of workers during both the business rescue proceedings at Finch Diamond Mine and the Section 189A consultation process at Cullinan Diamond Mine.”
