De Beers issues retrenchment notices to Limpopo mine workers despite ‘support’ promise

Trade unions have rallied behind De Beers employees at Venetia mine in Limpopo as the mining giant issues Section 189A notices threatening at least 1 200 jobs. This follows the company’s announcement that it will support employees impacted by the latest production pause. A section 189A notice is a formal written notice given by larger employers when planning large-scale retrenchments based on operational requirements.

It triggers a regulated consultation process involving strict timelines and potential Commission for Conciliation, Mediation and Arbitration (CCMA) facilitation. This followsDe Beers’ announcement that it will pause productionat the largest diamond mine in South Africa for two years. The mining giant did not specify what will happen to employees while production is on hold; instead, the company said it will support the staff.

“De Beers is engaging with stakeholders in accordance with relevant requirements and the company’s values as it moves through this process, and will both support impacted employees and continue to invest in its community and Social and Labour Plan commitments,” said thecompany when announcing the suspension of operations. The Citizenhas reached out to De Beers for a comment on the notices. Section 189A notices do not always end in retrenchments – sometimes there are voluntary options, such as voluntary severance packages or early retirement.

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Affected parties might agree to salary freezes, reduced working hours or employees being moved to other roles or departments within the same company. According to several trade unions, De Beers has issued Section 189A notices to some employees. UASA trade union spokesperson, Abigail Moyo, said it is concerning that the mining giant has decided to halt production for 2 years, as this could lead to retrenchments.

De Beers is halting production as a response to a significant drop in rough diamond prices. Moyo noted that Venetia Mine accounts for 40% of the country’s diamond output. While the mine employs more than 3 500 contract workers.

“The decision to halt production not only affects workers who are directly employed by the company, but also many other parties, including diamond cutters, boards, and contractors. Additionally, the heavy impact will fall on the high unemployment rate that our country is facing,” she said.

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