NUM signs three-year wage agreement with Petra Diamonds

The National Union of Mineworkers (NUM) has signed a three-year wage agreement with Petra Diamonds Limited at Cullinan Diamond Mine, Finsch Diamond Mine Kimberley Ekapa Mining JV and Kiffiefontein JV operations in South Africa. The wage agreement is effective from the 1 July 2017 and shall remain in force until 30 June 2020. This comes after a week-long strike after the union withdrew the labour of all its members working in Petra Diamonds at the Koffiefontein Mine, in the diamond-rich province of Northern Cape. The NUM was demanding a 10 percent wage increase across the board for three years, a housing subsidy and living out allowance of R1,500 to be paid every month for three years.

The union was also demanding an increase of R1,000  be paid to all employees who are part of the in-house medical aid scheme and 100 percent medical aid subsidy to employees who do not belong to the in-house medical aid scheme. The three-year wage agreement with Petra Diamond provides for annual increases to NUM members in the region of nine percent to 10 percent for year one, and 8.5 percent for years two and three. It is effective from July 1, 2017 and will remain in force until June 30, 2020. The parties agreed to basic salaries with a living out allowance of R1,200 for year one, R1,350 for year two, and R1,500 for year three.

A home ownership scheme subsidy will begin from R1,300 this year and accumulate to R1,500 in year three. The parties agreed to an ex-gratia equal to 50 percent of one month’s individual salary at Koffiefontein Diamond Mine, and 70 percent of one’s individual basic salary at Kimberley Ekapa Mining, Finsch Diamond Mine, and Cullinan Diamond Mine. The parties also agreed that with effect from July 1, 2017, maternity leave will be increased to three months with 100 percent of basic salary and one month unpaid. NUM members will also have their leave days increased to 21 days working days per annum for five days shift employees at both Kimberley Ekapa Mining JV and Koffiefontein JV.