De Beers Namibia Arm To Meet Union In Bid To Head Off Strike

9th Jul 2010 10:08

By Robb M. Stewart Of DOW JONES NEWSWIRES JOHANNESBURG (Dow Jones)--Managers from Namibia's Namdeb Diamond Corp. are set to meet with union leaders Friday in a bid to head off a pay strike set to begin from Monday, the diamond producer's brand manager said. Pauline Thomas in a telephone interview said representatives from the company's parents, the Namibian government and diamond giant De Beers SA, are also set to meet with Namdeb management. Diamonds are a major export earnings driver in the southern African country, accounting for roughly 40% of export revenue. Namdeb Thursday said the Mineworkers Union of Namibia had notified the Windhoek company of its plans to strike next week after rejecting an offer that includes a 10% increase in pay. The workers are demanding a 13% rise and increases in other allowances. Namdeb was pushed into a loss last year and carats produced fell 56% due to a fall in demand for diamonds during the global economic recession. "We are operating in times characterized by a worldwide economic downturn, which has adversely affected our industry," said Namdeb Managing Director Inge Zaamwani-Kamwi in a statement. "We were forced during the past two difficult years to expect our employees to bear with us as we battled for the very survival of our company." The company said toward the end of last year it increased basic salaries 12% across the board. The union represents 1,176 of the company's 1,600 workers, Thomas said. De Beers is 45% owned by Anglo American PLC (AAL.LN), 40% by the Oppenheimer family, and 15% by the government of Botswana. It equally owns Namdeb with Namibia's government. -By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; [email protected] (END) Dow Jones Newswires July 09, 2010 05:08 ET (09:08 GMT)