23rd Oct 2014 11:45
LONDON (Alliance News) - DiamondCorp PLC Thursday said members of the Mineworkers and Construction Union employed at its Lace diamond project in South Africa began strike action this morning, downing tools due to the company's refusal to employ two full-time salaried shop stewards.
"Management's position is clear: a mine development project of less than 260 workers does not require and cannot afford two full-time shop stewards," said Chief Executive Paul Loudon in a statement.
The strike has been given approval by the Commission for Conciliation, Mediation and Arbitration, making it a legal and protected strike under South African Labour Relations, but a "no work, no pay" rule has been put in place, said DiamondCorp.
"Management is disappointed that AMCU leaders have decided to encourage AMCU members at Lace into industrial action which in the end provides no financial benefits to the mine workforce but is instead self-serving only to the union leadership," said Loudon.
Until the strike ends, development will continue using members of staff that are not part of the union and contractors installing an underground conveyor belt system are not affected by the strike, it said.
DiamondCorp shares were down 6.9% to 6.75 pence per share Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
DCP.L