JOHANNESBURG – The National Union of Mineworkers (NUM) has warned that the Finch business rescue process has left around 689 workers in a state of uncertainty.
NUM further warned that the Section 189A notice at Cullinan threatens the jobs of around 1,090 workers.
Union NUM has “strongly condemned” Petra Diamonds' decision to place Kimberley's Finch Diamond Mine under business rescue and issue a section 189A notice to Cullinan Diamond Mine.
“Together, these developments put the livelihoods of approximately 1,800 people at risk and threaten the economic stability of the mining communities that depend on these operations,” NUM said in a statement published in The Bull Rush today, Sunday 14 June 2026.
The union said it “categorically rejects” any attempt to shift the burden of management challenges onto workers who have “continued to contribute to the company's profitability and sustainability through their hard work, sacrifice, dedication and productivity over many years.”
NUM Petra Diamond chief negotiator and National Health and Safety Secretary Masibulele Naki said workers could not be treated as a cost item every time companies faced financial pressures.
“It is unacceptable that companies continue to point to labor costs every time they face operational or financial problems,” Naki said.
“Workers are value and wealth creators in the mining industry, not liabilities on the balance sheet.
“Without workers, there is no production and no profit.”
Mr Naki further said that the NUM remains “deeply concerned” by the increasing trend in the mining sector of downsizing and business rescue processes being used as a first option rather than a last resort.
“We have to challenge the narrative that labor costs are the highest cost for a company,” Naki said.
“Executive compensation, management decisions, poor investment strategies, market fluctuations, and operational inefficiencies also have a significant impact on a mining company's financial health.
“Workers should not be expected to pay for challenges they did not create.”
Market realities and sustainability
NUM acknowledged that the global diamond industry faces significant market pressures, including weak consumer demand, falling rough diamond prices, increased competition from laboratory-grown diamonds, and growing economic uncertainty.
But Naki said companies should honestly acknowledge this reality “instead of giving the impression that employee wages are the main cause of a company's financial woes.”
Additionally, exchange rate fluctuations and the fluctuation of the South African Rand against the US dollar have a significant impact on revenue sources and production costs.
Because these economic factors are beyond workers' control, the NUM argues that these global market conditions, commodity prices, operational efficiencies and capital allocation decisions must be objectively considered when assessing Finch & Cullinan's future sustainability before jobs are sacrificed.
“Retrenchment cannot be a business strategy,” Naki said.
“Losing a job means families move closer to poverty, children have an uncertain future, and communities suffer from economic decline.
“The social costs of layoffs far outweigh the short-term economic benefits claimed by employers.”
call for urgent government intervention
The union strongly believes that the current crisis requires urgent intervention from the highest levels of government.
Mining remains a strategic pillar of South Africa's economy and cannot be left to market forces alone.
NUM called on the Minister of Minerals and Petroleum Resources, the Chief Inspector of Mines, the Minister of Power and Energy, the Minister of Trade, Industry and Competition, and the National Treasury to urgently convene a multi-stakeholder intervention to protect jobs, sustain investment and secure the future of these businesses.
“The government cannot sit on the sidelines while around 1,800 workers and their families face an uncertain future,” the union said.
“Mining remains one of the pillars of our economy and we must make every effort to preserve jobs, maintain production and protect the communities that depend on mining for their livelihoods.”
NUM requires strict regulatory oversight to ensure compliance with labor and mining laws, social and labor commitments, and health and safety obligations.
• Ministry of Mines and Petroleum Resources and Chief Inspector of Mines: Corporate rescue and section 189A consultation processes should be closely monitored to ensure that workers' rights and safety standards are not violated.
• Minister of Power and Energy: As rising electricity prices continue to put pressure on the sustainability of operations across the industry, measures must be strengthened to ensure affordable, reliable and sustainable energy supplies.
• National Treasury: We need to explore policy and fiscal mechanisms that help preserve productive mining assets, preserve jobs, and support investment during commodity market fluctuations.
• Minister of Trade, Industry and Competition: Must engage with stakeholders to identify measures to support South Africa's diamond industry, promote local benefits, expand downstream industries and protect decent work opportunities.
Protect workers' rights
NUM will participate fully in all consultation processes and will vigorously defend the interests of workers in both the business rescue proceedings at the Finch Diamond Mine and the section 189A consultation process at the Cullinan Diamond Mine.
“NUM will not stand idly by while thousands of workers face uncertainty. We will use all available legal, organizational and collective bargaining mechanisms to protect jobs, protect workers' rights and ensure their voices are heard throughout these processes,” Naki said.
