Following a decision of placing reportedly over 350 employees on layoff, employees of the Ekapa Group in Kimberley have been picketing outside the mine premises.
According to the employees involved, there is a lack of consultation from the management of the diamond mine. They say management also allegedly refused to pay certain monies owed to them.
In a statement on Tuesday 4 November, the Ekapa Group said the employees have been placed on layoff and are therefore not currently performing any work duties.
It must be expressly noted that their employment has not been terminated, as could be implied by this terminology.
“The company has been experiencing prolonged financial challenges due to the sustained downturn in the diamond market, a situation further exacerbated by the imposition of the 50% Trump Tariffs on India.”
Consequently, Ekapa engaged in consultations with unions and submitted an application to the Commission for Conciliation, Mediation and Arbitration (CCMA) for the Temporary Employer-Employee Relief Scheme (Ters).
This was endorsed by both unions by signing an agreement to this effect.
“This measure was undertaken in good faith as an alternative to retrenchments and to preserve employment.
“Regrettably, the process has been delayed pending the CCMA’s request for additional information.
“We are in the process of compiling and submitting the required documentation and remain optimistic that our Ters application will be approved,” Ekapa stated.
Process started early in September
The process of placing employees on layoff started early in September with the impact of the Trump Tariffs on India becoming a reality.
Diamond prices have declined by approximately 60%, primarily due to adverse global market conditions arising from factors such as the ongoing conflict between Russia and Ukraine, the war in Gaza, and more recently, the imposition of the Trump Tariffs on India.
ALSO READ: Ramaphosa lambasts Trump’s threat to ‘punish’ BRICS countries
Approximately 95% of rough diamonds are processed in India before being exported predominantly to the United States as finished jewellery, which now attracts a 50% import tariff.
“Consequently, our current business model has become unsustainable under these market conditions.
“In response, we have ceased operations on low-grade, high-volume dump material and are focusing exclusively on underground production.
“This strategic adjustment has necessitated a reduction in processing throughput from 800 000 tonnes per month to approximately 130 000 tonnes per month, with the objective of identifying and maintaining a sustainable operating model amid persistently low diamond prices.
“As a direct consequence of these measures, certain layoffs have unfortunately become unavoidable,” Ekapa stated.
CCMA hearing to follow
According to Ekapa, the protest action is unprotected and unlawful, with the National Union of Metalworkers of South Africa (Numsa) having not followed due process at the CCMA.
Ekapa said no negotiations were currently taking place, as the industrial action constitutes an unprotected and unlawful strike.
“We are however engaging on a voluntary basis under Section150 of the Labour Relations Act at the CCMA in order to discuss the matter.
“The substantive dispute has been scheduled for hearing at the CCMA on 20 November,” Ekapa concluded.
- The Temporary Employer-Employee Relief Scheme (Ters) is a temporary financial assistance programme for employers and employees in companies facing distress to help prevent job losses. It provides financial aid on the wage bill for a period not exceeding 12 months, allowing employees to continue receiving an income while the company’s employment is retained.
ALSO READ: Inwoners ruk op teen beoogde mynery by Rooifontein: ‘Julle is nie welkom nie’
