Hundreds of workers employed by Greenlab, India’s largest producer of lab-grown diamonds, temporarily halted work on 28 November following concerns over potential pay reductions. The strike, which took place at the company’s facility in Surat, was sparked by reports that the per-carat polishing fee was set to be lowered.
Dispute and Resolution
The walkout, involving a significant number of polishers, ended after a few hours when Greenlab management sent employees voice messages stating that no such pay cut would be implemented. A company director later referred to the incident as a “small misunderstanding”, attributing the unrest to internal miscommunication during business discussions.
The Diamond Workers’ Union Gujarat said that while demand for lab-grown diamonds has grown post-Diwali, many workers continue to face financial pressure. Vice President of the union, Bhavesh Tank, told the Indian Express:
“After Diwali, a growth is seen in the demand for the lab-grown diamond industry in the domestic and international market. The company’s owners should also ensure that the diamond workers, who have been facing financial problems over the last couple of years due to poor market demand, are paid sufficient salaries when the market is in good condition.”
Union representatives highlighted broader issues affecting both natural and lab-grown sectors, noting a pattern of friction driven by abrupt changes in per-carat rates and job cuts linked to fluctuating export demand.
Company Operations and Market Reach
Greenlab operates across the lab-grown diamond supply chain, from production of rough stones to cutting, polishing, and jewellery manufacturing, supplying both domestic and export markets. Its US subsidiary, Labon, handles sales of polished diamonds, with distribution supported through a partnership with Florida-based Green Rocks.
In 2023, Greenlab produced a 7.5-carat lab-grown diamond presented as a gift from India to the United States.
Industry Context
The incident highlights ongoing challenges in India’s diamond manufacturing sector, including shifts in global demand, labour costs, and employment conditions. Labour concerns have accompanied growth in the lab-grown segment, particularly in major production centres. Jewellers sourcing from the region may wish to monitor developments related to wage structures, production continuity, and union activity.
