Industry News
South African Trade Union: Diamond Industry facing 1,200 job cuts
18/01/2009
More than 1,200 job cuts are looming in South Africa's diamond mining industry, according to South African trade union Solidarity.
Solidarity recently received notices for the retrenchment of about 500 employees at Sandstraat Eksplorasie, Diamond Core Mining and Exploration, and Rockwell Diamonds. This follows last year's notices for the retrenchment of more than 700 employees at the mines of Namakwa Diamonds and Petra Diamonds.
"While retrenchments are already planned across all industries, the relatively small local diamond industry is being severely affected," the trade union told the local press.
These figures do not include retrenchments from De Beers, who are reportedly planning to cut 1,415 jobs, though it is unclear who many of these job losses refer to De Beers' South African operations, where it employees some 3,500 people. De Beers has expressed its desire to minimize 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 favorably with those recorded in the first half of 2008. October was, however, a very good month for diamond prices and cannot really be used as a benchmark for prices in general," says a spokesman for Solidarity.
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