Petra Ups Pay Offer and Avoids Strike Action

By John Jeffay / October 08, 2020 / www.idexonline.com / Article Link

(IDEX Online) - Mine workers have called off strike action at Petra Diamonds, in South Africa, after both sides agreed a pay deal.Debt-ridden Petra upped its original offer of four cent and will now pay employees an increase of 5% or 5.5%, plus one-off payments of between $300 and $500 approx.The British miner, which owns the famous Cullinan mine, has put itself up for sale as its debts mounts and revenue slumps.The National Union of Mineworkers (NUM) announced last week that it would take industrial action against Petra, De Beers and Exxaro, the biggest coal supplier to state-owned electricity company Eskom. De Beers, which offered 1.5% against demands for 8%, said it would carry on negotiating.Richard Duffy, Petra Diamonds chief executive, said: "We thank our partners in the NUM for their positive and constructive engagement that has resulted in this agreement. "This now allows us to renew our focus on continuing to deliver operationally as we reposition the business in emerging from what has been a particularly challenging period".Petra will make one-off, ex gratia payments at the end of November 2020. Employees in the A Paterson band will receive a 5.5% pay hike and those in B Paterson band will get 5%.Pic courtesy Petra Diamonds

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