By Staff Reporter

The Zimbabwe Consolidated Diamond Company (ZCDC) says it has launched a retrenchment exercise to avert collapse following a brutal global price crash.

ZCDC spokesperson told the media that the retrenchment was targeting around 200 workers.

“Diamond prices have gone down on the market. The company had to choose between closing and maintaining operations at a reduced rate whilst awaiting price recovery,” said the spokesperson.

Global market prices for natural diamonds have plunged by 26% since 2022, industry data showed.

Retrenched workers have since been ordered off ZCDC’s Chiadzwa operations.

 “Today’s meeting was about notification of employees who have been identified for involuntary retrenchment,” a memo from management written two weeks ago said.

“The identified employees will be served with notification letters today that they will sign. These employees will leave the ZCDC premises…reason being the nature of our core business, as well as trying to avoid incidents and injuries.”

Workers have since accused ZCDC of unfair practices.

“The decision to retrench employees has been marred by unfair practices, prioritising workers from distant towns (to stay) while local employees, who have been the backbone of this company, face unjust dismissal,” employees said.

“Close to 200 local employees have been retrenched. Local workers have invested their time and efforts into the company. They have also contributed significantly to the local economy,” one worker added.

The mining industry has seen more retrenchments in recent years as global mineral prices have slumped.

According to the Chamber of Mines of Zimbabwe (CoMZ) 1 216 jobs were lost in 2024, a fourfold increase from the previous year.

“As at December 31, 2024, records showed that at least 49 160 workers were employed in the mining industry, with a vast, but unknown number of unregistered small workers also operating largely in gold mining.”

A total of 69 mines retrenched employees in 2024 — up from 42 in 2023.