THE continuing strike at SA’s diamond regulator threatened the sale of the stones in the country , the National Union of Mineworkers (NUM) said yesterday.

Workers at the South African Diamond and Precious Metal Regulator have been on strike since last Friday, disrupting diamond imports and exports .

However, Standard Bank analyst Peter Davey said the diamond market would be affected by the stay-away only if the industrial action persisted.

"I would be surprised if the strike had a material effect on the market. SA is a lot smaller than Botswana in the global context, especially at the top-end jewellery part of the market," he said.

The chairman of the NUM’s branch at the regulator , Mangaliso Babu, said workers had "vowed to close the operations if (the) unwritten issues of corruption and nepotism are not addressed".

He said the employer needed to grant workers a 10% salary increase and a R1000 housing allowance, and review recruitment procedures and conditions of service . The regulator is offering a 9% salary increase.

CEO Levy Rapoo said last Friday that no diamonds were exported on that day, because of the strike.

"We did not anticipate the strike action. It is regrettable that the people who are responsible for the exportation of these diamonds are the very same people who are on strike," he said.

andersona@bdfm.co.za

Source : Business Day