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UPDATE 1-Strike hits BHP SAfrica mine; strike at plant ends

Published 08/28/2009, 05:43 AM
Updated 08/28/2009, 05:48 AM
BHPB
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* Workers on strike at Samancor HMM manganese mine

* Strike at Samancor Manganese Metalloys plant ends

JOHANNESBURG, Aug 28 (Reuters) - BHP Billiton said on Friday union members at its South African Samancor Manganese's unit Hotazel Manganese Mines (HMM) went on strike on Friday, but the group said it would still meet consumer demand.

The company said in a statement that members of the National Union of Mineworkers (NUM) went on strike over their demands of a 15 percent pay rise -- more than double the inflation rate of 6.9 percent. BHP has offered a 7 percent wage increase.

"We do not believe that the strike will impact our ability to meet our customers' requirements," BHP said.

HMM employs some 899 permanent employees, 38 temporary employees and about 970 contractors.

BHP said the global recession had weakened demand for manganese ore, and HMM was forced to considerably reduce its production over the past few months and embark on cost cutting measures. But these had failed to fully mitigate the effects of the market downturn.

The company also said another strike at its South African Samancor Manganese's Metalloys plant, which produces manganese alloy, had come to an end after workers belonging to the National Union of Metalworkers of South Africa (Numsa) accepted the group's offer of a 7 percent wage raise.

The metalworkers staged a one-and-a-half day strike from Thursday, but this did not affect production, BHP said.

The workers had initially wanted an 8 percent increase.

This plant has been operating below 50 percent of its capacity after closing for three months earlier this year due to the global recession. (Reporting by James Macharia)

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