Petra Diamonds plans to lay off approximately 468 workers at its Cullinan and Finsch mines in South Africa, according to the National Union of Mineworkers (NUM).
NUM claims Petra intends to replace many of its permanent employees with contract labor to cut costs. The union attributes the job cuts to weak diamond market conditions, operational underperformance, upcoming debt refinancing, and cost-cutting measures.
“The NUM believes these justifications are pretexts to sacrifice workers and shield executives from accountability for operational failures,” the union stated.
In an attempt to prevent the layoffs, NUM submitted a proposal aimed at saving the company ZAR 6 million ($329,682), but Petra rejected it.
Instead, Petra signed a memorandum of understanding (MoU) with NUM, offering affected employees a ZAR 10,000 ($549) relocation allowance and a 12-month recall clause, giving laid-off workers priority if rehiring occurs.
NUM has urged the South African government to hold emergency discussions with mining companies and labor unions to address what it calls a crisis in the country’s diamond industry.
As of publication, Petra Diamonds had not responded to a request for comment.
