South Africa: Strike at SABMiller’s unit will not result in beer shortage – managing director

Workers at SABMiller's soft drink unit in South Africa plan to step up their strike over pay this week, threatening to disrupt beer and soft drink supply in the new year, Reuters reported on December, 29.

About 940 workers at ABI - which employs 3,766 people and is part of SABMiller's domestic unit South African Breweries (SAB) - launched the strike last week, demanding a 9.5 percent wage hike after rejecting the company's 8.3 percent offer.

"We are in consultation with other members at the beer division of SAB and other subsidiaries to join us in a sympathy strike," Food and Allied Workers Union's general secretary Katishi Masemola said.

The week-long strike, which ABI said has had little impact on operations in the busiest trading period of the year, is likely to intensify in mid January, Masemola said.

However ABI Managing Director John Ustas said "all of our manufacturing plants are operating and stock is being supplied to our customers without interruption. We do not anticipate a shortage of cool drinks over the busy new year period."

ABI said all customer orders have been met, and it enjoyed record sales week last week.

29 December, 2009