Koidu Limited, Sierra Leone’s largest diamond miner, has halted operations and laid off over 1,000 workers due to disputes over wages and poor working conditions. The workers, receiving only 30% of their salaries due to outdated exchange rates, resumed strikes after negotiations failed. The shutdown may tighten global diamond supplies, impacting an already strained market.
Koidu Limited, recognized as the largest diamond mining enterprise in Sierra Leone, has ceased its operations and laid off over 1,000 workers amidst rising tensions regarding wages and work conditions. This development follows a strike that began in December 2024, which the workers temporarily paused to facilitate negotiations. When these discussions did not result in satisfactory compromises, strikes resumed in early March, perpetuating an already strained relationship between the company and its employees.
The situation each worker finds themselves in is increasingly dire. Charles Kainessie, the president of the Koidu Limited Workers’ Union, stated that the majority of employees have been dismissed, leaving only a few at the company’s main office in Freetown. The Ministry of Labour has acknowledged receipt of termination letters that affect over 1,000 individuals, confirming the widespread impact of this dispute.
Central to this conflict is the issue of wage calculations. According to Kainessie, employees are currently receiving only 30% of their actual salary values, stemming from outdated exchange rates that date back to 2016. These rates impact their pay, which is officially tracked in U.S. dollars but executed in Sierra Leone’s currency. In addition to wage issues, workers have raised alarms over poor working conditions, highlighting inadequate access to clean drinking water and proper sanitation facilities.
The consequences of this operational halt may extend beyond local job losses. As Koidu Limited typically exports approximately $100 million worth of diamonds annually, market analysts predict that this shutdown could exacerbate existing pressures on global diamond supply chains. Production cuts from major exporters like India have already strained availability, and this disruption could further elevate prices and reduce access.
Tensions have also escalated on the political front. Koidu Limited has publicly accused Sierra Leone’s First Lady, Fatima Bio, of inflaming the situation. During a visit to the area, she openly criticized the company’s treatment of its workers on social media, labeling it as “unjust.” The company, however, countered her claims, arguing that her statements were misleading.
Financially, Koidu Limited has reportedly incurred losses exceeding $16 million due to the labor strike and estimates that it will require an additional $20 million to resume its operations. This situation reflects deeper systemic issues within Sierra Leone’s labor market, underlining the urgent need for a sustainable resolution that could benefit both the workers and the company.
In summary, Koidu Limited’s suspension of operations and mass layoffs pose a significant challenge not only for the over 1,000 affected employees but also for the global diamond supply chain. This conflict stems from longstanding issues related to wage discrepancies and poor working conditions, possibly exacerbated by external political pressures. The future of diamond production in Sierra Leone now hangs in the balance as stakeholders await a resolution to these disputes.
Original Source: africa.businessinsider.com
