The mine previously announced that there is a high need for an alternative business model that can be implemented immediately or the company could soon close its doors, as it had become economically unsustainable and unviable as a result of the world market price reduction for rough diamonds. 

The mine initially requested all employees to take a 25% salary cut for the next three months, which the National Union of Mineworkers (NUM) had blatantly rejected. The union’s Regional Secretary, Cornelius Manhe, told OFM News the proposed 25% salary cut across all positions was unfair and would have a huge negative impact on employees at low-level positions already earning peanuts as opposed to those in managerial positions.

In a statement, the mine says it will now reduce salaries by 12.5% across the board for all staff members and that, among other short term measures, is “interim changes in pension fund contributions, optimisation of overtime as well as bonus deferrals”.

They in a statement confirm all reductions will be reimbursed when the new business model is successful and will be repaid from the earliest available distributable profits.

“The temporary measures will ensure that the business remains operational and that our people retain an income, with the prospect of returning to their normal remuneration,” explained Chief Executive Officer for Ekapa Minerals, Jahn Hohne.

The union previously said it was concerned that approximately 2000 employees at the mine might be jobless, but could not accept the 25% salary cuts.

Manhe confirms that they will not accept any salary cuts including the now proposed 12.5%. He says they have engaged the management of the mine on several occasions regarding steps that could be taken to save the mine and avoid salary cuts.

He maintains they will not accept any proposals of salary cuts for their members and that the mine should seek other amicable solutions.

OFM News